RE:RE:RE:RE:RE:RE:RE:shaping upIf that is in fact their plan it is a very dangerous game at the moment for two reasons.
1. It is completely possible that you may have an entity or group that can see very clearly what they are doing and is sopping up all the shares that they are willing to sell. They could very well buy on good earnings and force the shorts to cover at every higher prices. Just as with a short position to be most profitable it is necessary to build a position ahead of your attack. A short squeeze is most effective when they have already sopped up some of the float.
2. If earnings come out positively, or really positively, they may be forced to cover quickly as well.
Us longs can ride out any dips post earnings, but the shorts cannot ride out a rise in the price, as it may not dip back down. They have to cover. Time is on our side. Have patience and we will be rewarded.