Stock Squeeze! Look For All The Money You Can Invest in The Stock Market
by | Posted 5.29.2013 | Post Comment (No Comments)

I’ve carefully been looking at the market and what I see is beautiful…

While several investors are calling for the next Black Swan, I see many reasons why stocks will continue to rise for a good while.

By definition, a Stock Short Squeeze is when short sellers are forced to buyback the stock they are currently short since the stock keeps going higher and higher. When an investor thinks there is a short play (e.g. a company stock will eventually drop as it is overvalued), the investor can short sell the stock. The point is to sell a stock he doesn’t own in his portfolio since he thinks he sell the stock is now at a price of eg. $40 without owning shares and buys it back (to cover his position) at $25 after the drop occurs. However, if the investor is wrong and the stock keeps going higher, he will be forced to buy the stock at $60 instead to cover is sale at $40. This is a stock short squeeze.

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