Core Lithium shortsShorts have risen steadily this month...

Core Lithium shorts

Shorts have risen steadily this month indicating up to 27 Jan that short have not been covered. More likely they have continued to borro up w and sell short to control the price rising.

Looking at the rises in SP in the last month from:

0.96 on 28/12 up to 1.20 on 6/1 (25%); and

1.02 on 17/1 and 1.23 on the 30/1 (20.5%)

We can conclude this rose due to market demand and not shares covering (excluding the 27-30 jan as we don’t know the short numbers yet).

So share price is rising AND we still have 10% short positions which will need to cover at some stage. If they cover and general market demand for shares is high we can assume there will be a strong squeeze

Catalyst for shares covering:

• Fear. Market demand trending SP higher they may start mitigating the loss
• News. DMS plant developed and commissioned, second Ore shipment, change in media narrative about lithium. Electric car sales or market growth in general.

Conclusion

I can’t see the natural exit for the shorters such as Bad company news or a credit raise where the get a Get Out of Jail Free card. I think a squeeze is most likely at some point in the first half of this calendar year