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del_66

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too many people were short , this explains nifty's 500 point rise in 14 days..........
The mechanism behind a short squeeze is that when a large number of short-sellers get caught with their positions in the wrong direction, they will be forced to cover at any price, essentially putting in a buy/cover at market order. Investors/traders who were already long the stock will pull their sell orders, causing bids to go higher and forming a positive feedback loop. It is the same mechanism, only in reverse, during a crash where investors (and short sellers) put in sell at market orders and short-sellers pull their buy orders. This is why you do not try to catch a falling knife.

Source: copy+paste ;)
 

ajeetsingh

Well-Known Member
I am looking for good short position as such a rise is suspected by me
Dear, don't look in future.......... look in present.......now trend is up so we are long and in future when trend will down then we will go short......... but and now enjoy the bull ride....:)
:):thumb:

Bhai, here's my nice short(shot)


 
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