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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lee who wrote (77066)	3/6/2000 6:37:00 PM
From: Michael Bakunin	Read Replies (1) \| Respond to of 132070

Steve -- a short squeeze is independent of 'net covering'. It is a positive feedback loop that creates a class of buyers that will pay any price. In the recent, momentum-driven market, it is easy to suppose RMBS's rally may have involved such a process. -mb

To: Steve Lee who wrote (77066)	3/6/2000 6:52:00 PM
From: Freedom Fighter	Respond to of 132070

Steve, There is a buyer and seller in every transaction. Despite that stock prices move up and down. What you are missing is that the desire of some traders to buy is driving up the price and forcing some short sellers to buy at any price to avoid catastrophic losses. It doesn't matter if they are selling to other short sellers. They are new or stronger players. That there is someone else on the other end of those transactions does not mean that the rise is not a short selling panic. This is no different from a crash. There is a buyer for every share on the way down too but it is the panicking players that are driving down the price by being willing to accept anything to get out. Wayne