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Shortsqueeze

CCJ... are we destined to repeat the past?just some coloring.. could we sell our charts as arts? okay, kidding. i like CCJ..check out the 9/17 calls 28 strike and the 10/15/21 28's (really anything between $20 and 32ish) Price prediction. IMO. is bullish. Do i think this exact thing will happen? ..not at all. i just wanted to draw but its making stops and hitting locations just like before. trade safe my friends -Benz951 {edit} short term- ups and downs for Options. Puts winning as we come back down from hitting the intraday high. id expect a small continuation monday morning, to only bounce and go back up.
NYSE:CCJLong
by Jbridgez
5
Short Squeeze Potential MARA ? heavily shorted stock $MARA. weekly time frame we have a head and shoulders and we just broke the neckline now coming back in to test it, the big IF is if it can now hold as support. lost momentum from the profit taking and sell the news plus going into 3 day weekend. we had a promising break (if you caught that move to 32, nice one) Esp off all the Bitcoin ETF news and now we have the sell the news profit taking etc right back to the break out. which was clear resistance multiple times if you look left. idk. its something I'll at least watch. any crypto news or catalyst can put this back in play. it really really needs to hold this area especially over 15 but i really don't want it to go past 17.50-18. but yeah, that's my thoughts something to watch, feels like its kinda late to the party and the move was made but the amount of shorts in this is interesting. id target 32. for hypothetical purpose past that it can get parabolic. 32 was about the measured move from the head and shoulders although this is log chart. also currently resting on the 9ema. im not 'thrilled' for this. just something to keep watch on. and i also want to post this so i can view it later. Cheers! 3 day weekend. try to enjoy it. lol
NASDAQ:MARA
by Jbridgez
Bitcoin(BTC): Broke $45K zone!!! When Drop????We are back with Bitcoin after seeing a nice breakout attempt from bulls near the $45K zone, which was the zone that held the price for almost 30 days below its lines! With that being said, we are still seeing that lower zone to be grabbed, but as we are currently going under "short squeeze," we might see the price reach near $47K or something in that area. If the daily candle fails to secure that $45K zone, which is currently being broken but not secured, we will most likely see the beginning of the downward movement here! Swallow Team
BITSTAMP:BTCUSDShort
by SwallowPremium
Waiting to see how this head and shoulder plays outShort Squeeze is unlikely to happen again NYSE:GME GameStop's Split Will Be a Stock Dividend Dividend stock split isn't likely to affect short sellers. While shorts would be required to pay a cash dividend if GameStop issued one, a stock dividend works pretty much the same for all investors regardless of whether you're short or long. The effect is to increase the share count and lower the share price using the split ratio and there are no extra shares to pay back
NYSE:GME
by RealizeTrades
3
A Price, A Retard, And An Impossible Number: The Ballad Of $1700Okay.. We all know who/what I am here, and if you don’t then you’re new and I welcome you. Let's imagine we're a financial entity, with: market making privileges in equity, and a large market share of order processing, meaning we could, potentially, internalize demand as liabilities (IOUs/FTDs) or let them pass through to the market. with access to all standard products, meaning we're only limited by having to find a counterpart to any financial instrument we might want to use - even bespoke instruments. a big balance sheet. a large contact network, including political, enforcement and media. a widespread reputation of "knowing what we're doing" in a field in which very few people know what they're doing. For some reason or another, we decide to short a stock - we're fairly confident that it'll go bankrupt. Why we are so confident is irrelevant - we just are. However, we're not really allowed - or it's suspicious, or just want to avoid the connection - to have a position in the securities we market-make, therefore we use our network of institutions to have a series of hedge funds - not us, but bound to us through shared ownership or debt or aligned incentives or whatever - hold the short positions for us. It's also possible that these hedge funds are taking this short position of their own volition, and we have nothing to do with it yet. The point is, this specific stock has a growing short interest. It's easy to find the shares to borrow. All broker-held shares are kept within the DTCC books, that means they're all kept in a neat pile. We can borrow from the pile/warehouse and throw a few pennies back as fees. We then sell these stocks to retail, so the stocks end up right back on the borrowable pile - they never "leave" the brokerage, and the brokerage stores them in the same pile. We're adding a liability (the short stock) and an asset (the cash) on our sheet. They're fungible, and it's all happening in aggregate and behind closed doors, so nobody has actual proof - hell, nobody has reason to suspect in the first place, since the stock in question is a "bad stock," according to the news, and so the collective meme says it should go down. Since each sold stock goes back to the pile, there's no shortage to the borrowable supply, and therefore no reason for the interest fee to go up. We can keep pointing at a share, using that share to create a liability, receive cash, and then point at the same share again. Also, if we occasionally/often fail to deliver/borrow, who's gonna notice, let alone stop us, right? In essence: Customer bids/demands a share. The bid is routed to us by the broker. We grab a share from the borrowable pile - add this to liabilities. We add this same share to the customer's assets. We also take the customer's cash from their assets, and drop it in our assets. The customer's share is stored in the borrowable pile, thanks to the broker, so the pile's size hasn't changed. Result: Demand is satisfied. The borrow pile is unchanged. Our liabilities grow. Supply is not reduced. We took the customer's cash. We just need to be careful about the reporting methodology - make sure everything's tidy when the picture's taken, and as long as the pile is large enough relative to the daily volume, it's foolproof. Alright fantastic, each sale is free money, and the sold stock goes right back for-sale. Unnoticed, we're actually recycling the supply. The demand, on the other side, isn't - buyers need actual cash to buy, and that shit runs out. With endless supply and limited demand, the price goes down. Price going down should increase demand, but as long as the price is expected to continue going down, then that's neutered - people don't buy because the price is low, but because they expect it to rise. Besides, more demand means more sales, and more profit, yes? Eventually, we're confident the company will go bankrupt, and then we'll just be left with two piles: one of cash, and one of worthless liabilities, valued at 0. Pure profit, no need to even pay taxes, since we didn't really close our positions. Then, two things happen. First, some schmuck begins actually looking at the numbers - "bad stock" meme isn't enough for him, and he realizes that the stock is too cheap, related to the fundamentals. He begins buying and spreading the word, which challenges our preferred meme. Suddenly, there's a narrative of counter-culture/resistance around buying the stock, it's seen as giving us the middle finger, and the kids think that's cool. Whatever, let's underestimate them. The second thing to happen, is that another guy - this one actually has three commas, so he's a bit more difficult to deal with - buys a bunch of the stock, and declares his intent to become an activist investor. He maneuvers intelligently, and before long, he's chairman of the board. While we're good at making memes for boomers, this dude is good at making internet-native memes, and he, without ever actually interacting directly with the community, manages to cement himself as a trustworthy, competent figure, opposed to wall street and internet savvy. He outlines a turnaround plan which actually - independently of everything else - makes sense, and he brings the drive and level of compromise a founder figure can provide, as opposed to distant institutional owners. Now, a short position is a leveraged position, meaning we can be margin called if our unrealized losses exceed our collateral. Therefore, as the stock price stops going down, and begins going up, we have to begin to actually monitor the stock price and the short position size, versus the rest of our assets - and not all assets, but those considered high quality liquid assets, and therefore valid collateral. The way this works is, different asset types get assigned different weightings: the more liquid and risk-free the asset, the higher it counts. Cash is completely accounted, at 100%, but a risky bond might be counted at 10% only. Some assets might not count at all. The difference between the average short-sale price, and the current market price, multiplied by the short position size, can't exceed our high quality liquid assets, or we get a margin call. Liability: Current Market Price * Position Size, the value of the equities owed Assets: Average Sold Price * Position Size, the cash we got for the sales Our collateral must be greater than the difference between these. `(Average Sold Price - Current Market Price) * (Position Size) < = Value of HQLA Suddenly, demand - which has been growing steadily thus far - spikes. This has gone viral, and the transacted volume goes insane - way beyond what we can handle. The daily demand is bigger than the pile, so we're forced to let some of it through. Our methods had not been stress tested before, and thus we slipped. This means the price starts increasing, which fuels both more demand - from FOMO - and more supply - from people who consider the stock overvalued, and an easy short. The internal supply chains break, suddenly everyone's getting margin requirement notifications. The brokers don't necessarily know what's happening, all they know is that they sold a lot of the stock, and before they can turn around and buy it from us, the price has doubled - margin requirements go up! So, seeing this, trading is stopped at the broker level - they literally can't afford to owe any more shares. The apple store is out of apples. Close only. We, however, can keep selling, and we do. No new long positions, only new short positions - perfect, the price has to go down, regardless of the demand! The price falls down, the news spin this as a squeeze that's now over. The price falls all the way down to 40$, and then something breaks. Someone gets a margin requirement they can't meet, or someone places a buy order that's large enough, or something else happens, and forced buying begins, which again spikes the price. Liquidations are carried out, and at some point, these short positions end up in the market maker's books. While a hedge fund can get killed from such a spike, not us. We're a massive player, and we can sustain a lot more. We consolidate most of the short positions, to avoid any further melt-ups, and formulate an actual long-term strategy to get out of this mess. Melvin, Archegos, and others, are now dead, and we hold their books within ours. Up to now, we've had to survive by using collateral against the short positions, which means that, at a certain point, we need to liquidate non-qualifying assets, and turn them into cash (or some other acceptable form of collateral.) Therefore, when the stock price rises, we need to sell our other positions, and turn them into cash. This explains the stock's negative beta: when its price rises, we sell other stocks to raise cash, which lowers their prices. When crypto is no longer acceptable collateral, we sell it for cash, and the price dumps around June. So, in essence, the stock price has an inverse correlation to the price of anything else in our books that's not collateral. However, this isn't the best way to handle this - this is affecting the rest of our business, and won't work in a longer timeframe. Since we're a market maker, we don't really need to do the whole song and dance around borrowing shares, and holding collateral we can just directly create them as liabilities. This is the famous Fail to Deliver - they marked your assets and their liabilities, but that's it. Also, instead of being worried about collateral we're now worried about solvency. Okay so we turn around to security based swaps/total return swaps. What are these? They're a piece of paper that's worth the difference between the values/returns of two securities. I can then replace the shorts vs. collateral method with swaps. No need to bother so much with high quality collateral, since whatever's on the other side of the swap essentially functions as collateral - I only need collateral for the difference. I can get a negative exposure on the stock price, against a positive exposure on the overall market. This way, if both go up together, then it makes no difference to me. Likewise if they both go down together. Any decrease in value from the movement of one is offset by the movement in the other. Let's assume our swap is done against a broad market basket and call it the counterweight (CW.) Now, instead of the stock and the market having an inverse correlation, they have a positive one. If the stock goes up 10%, then as long as the CW also goes up 10%, then the value of the swap hasn't changed. I don't have to massively sell anything, it's less suspicious, reporting rules are way more relaxed, the enforcement agency is much more, uh, amenable to my proposals. This works both for being long stock vs short market, or long market vs short stock - I can finetune my exposure both ways. Importantly, what before were these counter-cyclical spikes, are now pro-cyclical. Has the stock gone up? Nah, it's the whole market, nothing suspicious! While before we counteracted the demand with short-selling, now we just fail to deliver - essentially neutralizing demand. Sure, that's even more troublesome, but nobody's ever paid any mind to Dr. Trimbath before, why would they start now? So if anyone buys the stock, we just add that to our liabilities, without it impacting actual market supply/demand. We can selectively decide to let some demand pass, in case we need to raise the price. What this brings about, then, is a delicate balance: we can let demand for the stock reach the market, in which case the price increases. we can let demand for the stock go to our liabilities directly, in which case the price decreases. Then, we can observe demand/supply, and have an algorithm decide which % of purchases to deliver. Monitor social media. Bullish sentiment? Sell them calls, and reduce the delivery % (let the spot purchases go directly to the balance sheet) - price doesn't rise. Bearish sentiment? Do the opposite. So now If the stock's demand goes up, we can decide whether to lower the delivery %, through which we avoid a price increase, but in exchange become more levered. We want the price to be as high as possible, up to the point in which we get margin called - the ceiling. Therefore, we'll deliver as much as we can, and start FTDing when the price gets too high. If the stock's demand goes down, we can decide to increase the delivery %, through which we lower our leverage, but in exchange the price doesn't go down. We don't want low prices: more people will buy, and we'll lower our average entry price. Therefore, we'll reduce leverage as much as we can. We might prefer to lower the price, but that'd depend on more meme-manipulative strategies, and not market-based ones. Therefore, we observe demand + supply, and decide what % to internalize, and what % to externalize, thereby controlling the price. Depending on how big of an institution we are, we might be able to do the same, to a lesser extent, to the CW itself. Say, if we processed 70% of all orders, who's to say we can't nudge the S&P a bit, eh? Even if we can't, though, that's unimportant. If the CW's price goes up, that gives us more breathing range. We can tolerate a higher ceiling stock price without danger, so we'll internalize less, reducing leverage, and increasing the price, until we reach the new, heightened ceiling. If the CW's price goes down, that gives us less range. We can tolerate a lower ceiling high stock price or risk a margin call, so we'll have to internalize more, and become more levered, but lowering the stock price. Alternatively, we may choose to pump the CW - a couple million hitting the ask at the right moment should be enough. We have, then, two variables of import: the CW's price, over which we may or may not have a degree of influence. the stock price, which results from demand, which we observe, and % of FTDs, which we control. In this way, short selling is something we long stopped doing. Did the shorts close? Not really, but who cares. The question is whether we still have an exposure to the stock price, regardless of the mechanism. Up to now we have a nice little model. It's not infallible: our control over the variables might not be perfect, and if demand doesn't stop we'll eventually be in trouble, but these dudes need to eat - wait long enough, and they'll get discouraged. A split, you say? The size of my liabilities hasn't changed. Yeah, they're 4 times as many stocks, but IDGAF about stock number - I care about the notional size of the position. "In the shape of a stock dividend"? Yeah, nope. Spread some confusion about it. What can they do? Yeah, they'll seethe, but they've already been seething all along. If someone in an actual position of power comes around, we'll send some guys in suits to dazzle them with words. Who will they believe, the suits, or cherrypicked examples of particularly stupid apes? We like the chaos. The more chaos, the more tiring it is to find the truth, and the longer we can get away with shit. Unless the company withdraws from our system. In which case, I have no idea, because the debate shifts over to the legal battleground instead. What else could threaten us? Well. You know what. DRS. (Direct Registration of shares) Moving these lendable shares out of brokers hands, and off of the DTCC. On one hand, if 100% of the shares are accounted for outside our system, then we're suddenly on the defensive. Now they don't really have to care about what we say the price is, do they? They could separate completely, accounting for all the shares, and trade within a separate system. What would we do with the deluge of DRS that'll hit? I have no idea, but it seems like the supply/demand equivalent of dividing by zero. On the other hand, every share removed is, essentially, forcefully accounted demand. Say, you buy a share, I drop it on liabilities and FTD, and then you DRS it, then you're indirectly increasing leverage, since (total shares in books/actual shares in my vault, "the ratio") just got reduced by one on both the numerator and denominator. Do that enough times, and since the numerator is higher than the denominator, we're gradually increasing the ratio, which makes the effect of demand on price have a larger magnitude. How? Because the ratio is also the ratio in which I transform demand into either a price increase or leverage. When we turn demand into price increase or leverage, the rate at which that happens is that ratio - the more we DRS, the higher the "cost" of turning demand into price or leverage. Meaning, the more we DRS, the more violent price changes will be, and the more magnified the leverage assumed will be. DRS 100%, and that rate becomes Therefore, a separate market observer might want to consider two indicators as endgame conditions: the DRS percentage + its rate of change, which can be proxied by the price of the stock, against some measure of how much free cash retail has, because this determines the speed of DRS. The lower the price, and the more available cash, the faster DRS will increase. the price of the stock, against the CW (let's assume a broad market index of multiple asset classes.) If the stock outpaces the market, then we know the swaps are closer to breaking - this will have two possible effects: every time except the last, it will cause the stock price to go down, or the market prices to go up, to keep the swaps alive. eventually, the swaps will die, and then the stock will go up, and the CW go down, in a self-reinforcing de-leveraging. So now what the hell happens? I have no clue. I wouldn't want to find out, either. I'd take more and more risky moves. If at one point I'd have been careful about the legality of my moves, then by the end that wouldn't really matter much. Might even want to try to get political power to leverage that. After a certain point, the capital market problem spills over into the legal, social, memetic, political. Whoever's managing this shitshow hasn't slept well in a while, I can guarantee that. Let’s see how this Ballad continues/pans out, If you made it down here I commend you for at least taking the time in reading this.To all of my Retards, I will see you on Banana Planet.
NYSE:GMELong
by Captain_Cam
23
Massive Falling wedge on GME weekly!!!!!!!!!!!!!Just wanted to point out that GME has now reached the end of this massive falling wedge on the WEEKLY. A breakout of this wedge could be absolutely massive to the upside. Also, the last time the Ultimate RSI was this low, shortly after we seen a 155%, $19 to $50 spike in just 14 days. With new legislation for reporting short positions and the pressure on the Hedgies to finally close out, this could be the move everyone has been anticipating. Not to mention the massive amount of DRS'd shares we have been seeing. Grab your fav snack and bev because the extravaganza is about to begin. GLTYA, and happy trading ✌️
NYSE:GMELong
by impossiblebull
12
🔥 ICP Long-Term Trend Shift: Short-Squeeze PotentialIn the past I've written many times about ICP's terrible performance and price action. It was one of the worst performing tokens of the last 2.5 years, with a serious risk of never going up again. But, where there's pain, there's also opportunity. With ICP losing over 99% in value in 2.5 years, it has some serious potential to pump. Not saying that we're going to see new all-time highs, but a move towards 100$ is still in the cards. The weekly RSI has hit it's highest level since ICP started trading on Binance. This is a bullish metric in itself. Furthermore, with ICP being so weak, it was a shorter's dream come true. I reckon there's a lot of shorts currently wondering whether to close their short position or to leave it open. If BTC (and alts) continue to rise, ICP will rise with it, making more and more shorters close their positions, which leads to even more bullish price action since they have to buy their positions back. This could cause a short-squeeze in ICP's price. All in all, I think it's quite possible that ICP's lows are in and that we're going to see a long-term trend shift.
Long
by FieryTrading
6
IHS confirmed , next BIG short squeeze?Long and strong IHS confirmation breakout and tested Fundamentals: Company fully funded and largest factory in Moses Lake has started production with recent contract signed for the next 10 years worth around 3 busd. Todays mcap is around 0.6 busd. Guided ebidta for 2025 is 100-300 musd Dept around 260 musd with favorable terms Production within 3 megatrends in the U.S, semi chips, solar and batteries (silane gas) All production sold out, but silicon anodes manufacturers ( Sila Nano, G14, Oned) has established around their Moses Lake facility in hopes for silane offtake. Amprius and Cenate has mentioned and hopes for REC silicon silane gas, and company itself says they have discussions with multiple companies regarding silane. REC has 70% markets share of silane gas, and it looks that replacing grafite with silicon will be the next big thing. The potential for REC silicon and its silane gas are endless the next 5 years as this explodes. REC also has a 15% stake in Yulin factory in China, and are in proccess of selling this stake, which is valued to 150 musd. 1/4 of todays mcap just in cash!! Proccess is going slow but we are close to an end... This stock is worth following the next year!! Also to mention is that due to restart and impairments, Moses Lake factory(replacement cost 1.7 busd) is zero in the books. Yulin has also been written down to zero... and revarsal of impairments would most likely be reversed next quarter, Yulin is a huge bonus with cash, and company has also recievd a large amount of pre payments in the 3 busd contract recently signed. Today REC silicon is one of the most shorted stocks in Oslo stock exchange, but there is a huge chance of a potential short squeeze here when market discovers fully what is about to happen here....
OSL:RECSILong
by Sirbalo
AMC Entertainment Holdings Options Ahead of EarningsIf you haven`t bought AMC before the Gamma Squeeze: or sold before the approved combining AMC shares & APE units: Then analyzing the options chain and the chart patterns of AMC Entertainment Holdings prior to the earnings report this week, I would consider purchasing the 10usd strike price in the money Calls with an expiration date of 2023-11-10, for a premium of approximately $1.17. If these options prove to be profitable prior to the earnings release, I would sell at least half of them. I`m still bearish for the long run. Might end up in bankruptcy after all. Looking forward to read your opinion about it.
NYSE:AMCLong
by TopgOptions
1
GEVO. Manipulation Short squeeze. How short positions are reset.This example is on paper company Gevo inc - manufacturing. Chemical industry. Specialized chemicals. I will say that I combined the training idea with the trading one , how the stocks will be relevant for trading now, the potential first profit with confirmation of support can be about + 90%. Everything that happens now, goals, read below under the description of the manipulation of a short squeeze. But let's plunge into the past and in order to examine this detective story in order to evaluate this masterpiece of trading art by applying the punishment of the zombie crowd of believers “it should be like that” and “put sure Stop-Loss like a smart uncle wrote to us in a book.” It was like this ... It seems that the downtrend will last forever. After all, the price over the past 2 years has fallen by almost -99%! Dump from $ 245 to $ 3.30! This is what happens with real companies, but what about non-existent crypto projects? After all, almost all crypto projects are built on promises that this “nothing” will cost a lot. Buy and hold, and you and the plant employee will become a millionaire in a couple of months / years. The sweetest lie, the more willing poor John believes in it. As you understand, in many cryptocurrency projects for lovers of “buy and hold”, to become a millionaire and stop going to the factory is still ahead. It doesn’t matter whether these assets are pumped up yet or not, but their ultimate fate is the complete disappearance in the near future of the life of poor believing John. The graph shows a strong downtrend , merciless to investors. But among investors, one must not forget that there are very rich uncles who can also make a mistake. But those who want to fix it. Well, it is clear that after such a fall from $ 240 to $ 3, no sane person believes in growth already, how silly it is. Most traders enter only a short position. But there are more intelligent people who have thought and decided why we don’t make a lot of money on “100% faith” of people. The strongest downtrend. Drop from $ 240 to $ 3.30. Minus 99% for 2 years. As part of this trend, many sellers are going to expect a continued decline in the trend. But after all, everyone was taught that it is necessary to put Stop-Loss, and if you do not, then you should always close somewhere. Where will everyone have stops on this chart? Yes, everything of course depends on the point of opening positions, but the generally accepted approach - Stop-Loss who enters a short position will be put for the nearest resistance, that is, we will be interested in the zones above the selected levels on the chart. If everything is clear and the main crowd has so much faith and become accustomed to the eternal fall, why not take advantage of this and start the domino effect? After all, money is burned only initially to start the process, then only fantastic earnings. How everyone will be "trapped" in a trap. Any inadequate Stop-Loss sizes will be reached. Buy or margin Call. Gevo inc. Levels where the crowd of "shorts" puts Stop-Loss. It is in these zones that Stop-Loss of most market participants are behind the resistance. Large players understand this very well, it’s a sin not to use it if you have enough money on hand for this manipulation. Perhaps the biggest player is the company itself, which is very interested in getting out of a loss-making situation and making big profits. After all, having for this a certain amount of money you can start an avalanche-like process and get the most unattainable Stop-Loss, thereby moving the market up against the current trend on Stop-Loss. This is an avalanche-like process. You understand very well what will happen to those traders who have opened a short trend and the price will begin to rise against their position, and even grow rapidly impulse with no chance of pardon. Yes, everything is simple, when we reach a certain zone, the order is executed, that is, the position is closed by Stop-Loss. And we all know that a position is closed by opening a reverse position, which means that if we were on sale, then a purchase is opened to close, that is, we create additional demand for growth. And so on the chain. And it’s not scary that then the price will return very quickly back to the previous values, because the manipulators will be in big profit, and the trader who caught the margin will no longer enter a short position on this asset. This is what came out of the chart below. Gevo inc. Growth + 600% at closing short on Stop-Loss. As we can see, the first strong resistance was + 100% of the minimum value before the short squeeze. That's how you think who believed that the price will reach these values? It is clear that no one, well, especially since the price will reach the last Stop Loos zone. For such an action, money was needed only until the first Stop-Loss zone, after which the price moves according to the domino effect. Growth fuel is the closing of short positions. Virtually no one believed in growth, which is why the impulse was + 600%, due to the closure of short positions of those who did not believe. After a while, the price broke the line of the main downtrend. Price shifted to lateral movement. Wishing to enter the short was less and less, as everyone remembered the previous margin Call. A year ago, there were two more attempts to punish those wishing to enter a short position in this trading instrument. It was not possible to repeat the short squeeze situation on such a scale. The first short squeeze is + 67% and immediately after it + 27%. It can be seen that there are no more willing traders to enter a short position on this trading instrument. Gevo inc. The situation is now. Please note that only on short-squeezes did a large volume go out at the auction. Traders with short positions were squeezed out of the market specifically. In lateral movement, the price is now drawing a formation that could become a triple bottom. If support is confirmed , the growth potential to the previous local maximum and the first resistance is about + 90%. ___________________________________________ Manipulations. Someone thinks that manipulations occur only in the crypto market, this is not so, they are everywhere, only in the crypto market they are open and arrogant, as there is no responsibility for this. In other markets, there is price manipulation, but to a lesser extent, as if the relevant authorities prove guilty there will be huge fines, or the deprivation of a license for trading activities up to the prison. ___________________________________________ What is a squeeze on the exchange. Short squeeze. Long squeeze. Squeeze (eng. Queeze - squeeze out) - a situation in the financial market when Stop Loss is sharply collected. As a result of the sharp increase, part of the Stop Loss is squeezed out, and part is closed at the “what is” price, this leads to an even greater increase / decrease in the price. Since positions can be held both in purchase and in sale, both short-squeeze and long-squeeze are possible. Short squeeze - it happens when sellers (shorts) are forced to close their open positions in order to avoid even greater losses, which only spurs the price even higher. On the graph, the hairpin (shadow) is up. Long squeeze - exactly the opposite. A sharp decline in the price of assets, forcing buyers (longists) to close their positions. Here, the buyers are already the “victims”, who are forced to close open transactions at a loss in order to prevent even greater losses, which provokes a further drop in the price of the instrument. On the graph, the hairpin (shadow) is down. ________________________________________ Short squeeze on margin trading. If it comes to margin trading, the strongest buyer today is yesterday's short. The vicious circle for bears is called "short squeeze" - short squeeze. In order not to be trapped, market participants must understand the principle of short positions, see the potential for a situation that could provoke a “short squeeze”. Experienced traders know how to make a profit with a short squeeze. The strongest short-term growth waves often occur during periods when a large number of lower players find themselves locked in an unprofitable position due to an unexpected price increase for them. As a rule, these are mid-level traders and so-called “hamsters” market participants with a level of knowledge and experience that is close to zero and close to it. Unfortunately or vice versa, fortunately the bulk of the crowd of the crypto market is precisely this layer of society. In such a situation, in order to get out of the trap they have to actively buy this cryptocurrency in which they are locked at any price in order to save part of their capital and fix the loss. I will explain in more detail so that the mechanism of this phenomenon becomes more clear. A short position or short-term transaction (from impudent short) is an operation when a trader sells a borrowed coin with the intention of buying it back later at a lower price. After the return of the borrowed coins, the difference between the sale price and the purchase price becomes profit. You can borrow cryptocurrency from the exchange, which as a guarantee for such a loan requires an adequate amount of guarantee security in the account. As a guarantee, money, bitcoin or other cryptocurrencies, which are valued at a certain discount, can act. When the value of the coin in which you are in a position increases, the size of the required guarantee for short positions also begins to grow rapidly. If the amount of funds in the account is insufficient to cover the required amount of security, the exchange may forcefully close the position. Downgrade players usually try to prevent this situation and close the position before submitting a margin call request from the exchange. However, their tactics here are essentially the same - a quick purchase of a coin that has grown in price, and you are in a short unprofitable position on it. If the size of the positions of such participants is large enough, then this situation can lead to skyrocketing prices and the avalanche-like closure of other shorts. Scalper traders and intraday traders who often open counter-trend trades in the hope of a pullback after active growth can aggravate the situation even more. If the rollback is not realized, then their purchases may become additional fuel for the upward movement. ________________________________ The immaturity of the cryptocurrency market provides opportunities for manipulation. An important feature of the cryptocurrency market, which is often ignored, is its tendency to respond to the actions of individual bidders. By individual bidders, I mean large traders, the creators of individual cryptocurrencies on which manipulations occur, as well as exchanges, which naturally themselves are owners of large cryptocurrency assets. And also, if desired, can affect their price. Roughly speaking, these are market participants who are called “whales” in the slang of traders. The cryptocurrency market is more affected by the influence of these particular market participants than other markets, due to the lack of maturity and insufficient control of the relevant state financial control bodies. No fundamental does not work without money support, but money on the exchange without the influence of the fundamental works in such an uncontrolled market perfectly. For example, we are all familiar with such frequent phenomena in the crypto market as "pumps" (artificially pumping prices). Very often they occur even without the release of FUD news on a particular coin. Also, the entire crypto market is very much tied to the dynamics of bitcoin, which can lead it in the opposite direction to fundamental factors. In recent years, the market has become more “mature”: instead of the buy-and-hold trading strategy, many have begun to use more advanced methods. Futures contracts, trading with leverage, opening short positions are now available. The more powerful players appear in the industry, the more the community takes on them “tricks” from the field of trading. More and more traders are using short positions in a falling market, allowing them to earn money in such conditions. And naturally, in such conditions, short squids and long squises often occur. Since the majority of traders take short positions in the bear market, many receive big losses, some especially greedy and not experienced margin calls. Large investors can begin to behave dishonestly Short-squeeze can be carried out only by a large market participant, such manipulations are beyond the power of ordinary traders. How to do this you need a huge amount. As a rule, such manipulations are done by the exchanges themselves. This is illegal - but everything is legal on the cryptocurrency market! There are conspiracy theories that such manipulations are carried out by exchanges, thus getting rid of customers who will definitely be in the black due to short positions and withdraw money from the exchange ecosystem.
NASDAQ:GEVOEducation
by SpartaBTC
23
Cracking the Short SqueezeImagine this: a group of traders betting that a stock's price will drop. But suddenly, the price surges, forcing them to buy and causing a chain reaction of buying that shoots prices up. This exciting but risky event is called a short squeeze. Why Does It Happen? Short squeezes occur when a lot of traders need to buy suddenly. These traders, initially betting on price drops, now must buy to cover their positions, creating a buying frenzy. The more traders in this situation, the higher the prices shoot. It's Not Just Stocks: Short squeezes don't only happen with stocks; they can happen in any market where traders can bet on prices dropping. If there aren't many ways to bet against an asset, its price can keep rising for a long time. Rare Opposite — Long Squeeze: On the flip side, there's a rare event called a long squeeze, where people betting on price rises get trapped in a selling frenzy, causing prices to drop suddenly. How Traders Use It: Smart traders watch the long/short ratio for an asset. If there are more bets against it (shorts) than for it (longs), there might be a squeeze opportunity. These traders buy before the squeeze and sell when prices shoot up, making a quick profit. In the world of finance, short squeezes are like exciting rollercoaster rides. They can lead to big gains, but if you're not careful, you might end up taking a financial plunge. Happy trading 💜
Education
by Vestinda
🔥 LUNA 1-Year Resistance Break Out: Short-Squeeze Coming? 🚨As of today, LUNA has finally broken out through a bearish resistance line that has been produced in September last year. In my view, this can be the break out that patient bulls have been waiting for. I'm waiting for a daily close above the resistance before calling the break out a fact. Stop below the Sept 4th resistance. Target at 2$. With LUNA being one of the most shorted tokens at the moment (it has no right to exist), this bullish push can be the trigger of a short-squeeze event that can bring LUNA back up towards the 2$ target or even more. Bears are sweating on this move.
Long
by FieryTrading
8