Good News & Bad News, page-39589

It’s a pretty confusing set of facts.

Share price up 40% since the bottom and shorts don’t appear to have really closed any positions at all (which I have very openly been speculating would happen).

If you zoom in on the data it clears things up a bit.

Shorts mostly increased between July to November 2023. Over the same period PLS went from $5 to $3.5. So give or take, the average short position would have been taken out at around $4 or just higher.

So I guess shorts with an entry between $5 and $4 are probably sitting back waiting to see what unfolds.

Shorts that opened between $3.5 and $4 are probably starting to get a bit nervous particularly with the futures closing almost 10% up tonight.

then there’s also the matter of ego and momentum. These hedge fund guys hate backing out of their positions and it usually takes a lot to make them do it. But once the first few do, the others tend to follow and the momentum tends to build and not stop.

Not saying that will end up squeezing shorts out, but I’d say the probability of a squeeze is now far higher than it was a few months ago.

The fundies who entered shorts $5-$4.5 are the market leaders here. The others likely poured in when they realised where all the money was going. The same will work in reverse.