Author Topic: Short Squeeze or the Real Deal?  (Read 1729 times)

Rob L

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Short Squeeze or the Real Deal?
« on: December 01, 2020, 06:55:21 PM »
LC stock has been on a tear since putting in an opening low on 10/29 of $4.42. It was the third time it tested lows in that area.
They announced earnings after the close on 11/4. The stock had moved upwards to $5.55 into the close before earnings were announced.
The day after earnings were announced (11/5 Thursday) the stock was essentially unchanged on very heavy volume.
The next day 11/6 it was hammered back down to $4.99.
Before the open on Monday 11/9 Pfizer announced terrific results of their clinical vaccine trials and everything went up, including LC to $5.60
Things went sideways until 11/18 when LC soared up inexplicably on very heavy volume to close at $6.53.
On 11/20 it closed above its 200 day simple moving average $6.50.
It's been more or less straight up since then and LC closed today at $8.22 on heavy volume, up 86% from the low cited earlier.
However, closing at the low of the day today that saw a high of $8.68 should make tomorrow interesting. I have found absolutely no explanative LC news.
The message is either shorting in a bull market is dangerous or LC has better prospects ahead?
For the record I am neither short nor long, just an interested bystander.


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Re: Short Squeeze or the Real Deal?
« Reply #1 on: December 08, 2020, 02:08:43 AM »
I think the thing that you're missing is that the market likes the shutdown of the retail platform. It's a cost center that wasn't generating enough volume to justify itself. I really don't think that there is any definitive evidence that LC has turned the corner though.


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Re: Short Squeeze or the Real Deal?
« Reply #2 on: January 24, 2021, 04:15:05 PM »
A short squeeze occurs when a stock or other asset jumps sharply higher, forcing traders who had bet that its price would fall, to buy it in order to forestall even greater losses. Their scramble to buy only adds to the upward pressure on the stock's price.