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Strategies & Market Trends : Ask Vendit Off-Topic Questions -- Ignore unavailable to you. Want to Upgrade?


To: Venditâ„¢ who wrote (5810)3/4/2005 4:31:59 PM
From: Walkingshadow  Read Replies (1) | Respond to of 8752
 
<< Perhaps by definition alone, short squeeze and short position covering are two different animals? >>

The only real difference I see is that short covering includes situations where shorts are simply taking profits... a correction, that is.

Short squeeze OTOH refers to situations where shorts are getting increasingly underwater on their positions, so fear sets in and covering of positions accelerates and/or stops kick in en masse.

The end result is always the same---buying pressure.

But with AAPL, buying pressure from other sources I think overwhelms buying pressure from short covering. Also, I suspect most of the short positions are hedges against long positions, and if so, they will not be as anxious to cover the position since it is basically just insurance against loss on the primary position (long) rather than hoped-for profit.

....all IMHO, as always...

T