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First of all, the share has to have a really high short ratio. $PBB was a good example of this at 17%. Now you have to buy really well just before the shorts expire so that the shorties can no longer get in - and then the Luzi takes off.
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@Reinecke $SMR was about 27% short interest at the end of Feb and time to cover 6 days!
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@Epi But then the movement may already come, because the shorties are now buying back.
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@Reinecke Yes, I think the movement is coming from the coverings. The last news was ridiculously insignificant.
The only question is when the run will be over and how to recognize it beforehand?
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@Epi then you have to keep an eye on the short rate.
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@Reinecke Okay, getting current data is not trivial.
And when I have it, what do I do with it in your opinion?
So selling makes sense if the short free flow ratio falls from 27% to 20%? Or 15%? Or what does the theory say?
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@Epi You can't do that mathematically unless you can process greed in a variable. I always follow my grandmother's example, cash in when it suits you and never look back.
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@Reinecke If I do what your grandma does, why do I need to keep an eye on the short rate?
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@Epi because you can recognize when the cashing out starts.
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@Reinecke Good in this generality. But I can't mathematically determine the point according to your statement. How do I recognize in the short data that the cashing out has started?

I would really like to know. The price increase is almost frightening.