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To: WhatsUpWithThat who wrote (12622)	5/12/1999 5:07:00 PM
From: keith massey	Read Replies (1) \| Respond to of 62348

Or does a squeeze only happen when there is some other trigger to start an uptick and shorts covering only accentuates the move, sort of like stop losses kicking in accentuates a drop on other news? You hit the nail on the head. The bulls will push a stock with a large short position up until the pain threshold is reached by the shorters. At this point it becomes a short squeeze and shorts will jump over each other to cover (Margin calls don't help). The whole time the bulls keep buying to really let them have it. Just a big war going on every day. Best Regards KEITH

To: WhatsUpWithThat who wrote (12622)	5/12/1999 5:09:00 PM
From: The Osprey	Respond to of 62348

A short squeeze occurs when people rush to cover short positions usually preceding news or a buying frenzy that may precede what they believe to be forthcoming news. I.E.-I go to my broker and ask to short BII.T at 29.00.He borrows the shares and sells them at 29.00.The stock drifts down as I suspected.It now hits 17.00 and all of a sudden there is buying.I chase the offer trying to pick up the shares I need to replace that I borrowed.In a fast moving stock when the short is in a narrow price range this triggers buying to cover"a position".At 29.00 I may not worry so much but at 18.00 to-day I would be chasing the offer to protect any profits on the short. Some people use a stop Buy just above the short price which works the opposite of the stop loss. IE if I shorted BII at 19.00 I may put a stop buy in at 19.50. The stock goes down to 17.00 and then something happens and people who shorted lower than me scramble to cover as the stock appreciates.If I am not covered when the stock hits 19.50 my buy becomes a market order buy and I may be hit with a loss of .50/share plus interest charges and loss of commissions.

To: WhatsUpWithThat who wrote (12622)	5/12/1999 5:12:00 PM
From: Canuck Dave	Read Replies (2) \| Respond to of 62348

Short squeezes are mostly urban legend. Or vain hopes of longs who have seen their shares sink towards oblivion. Every once in a (long) while, the number of shares shorted in an issue exceeds the supply available for trading (the float). When this happens, in theory the shorts must buy up non-existent shares and the price rises as margin calls kick in. The shorts are hence 'squeezed' and have to pay huge prices to cover their positions. Every once in a while, it does happen, usually orchestrated by some well heeled group of investors. Stocks like T.BII move mostly because a lot of day traders (us) are all over it and it goes through wild fluctuations. Don't hold your breath waiting for a real short squeeze. I've personally never seen one. CD