Shorts starved: reports of no shares left to borrow right now followed by forced covering very shortly
I've heard 2 reports today of brokers seeking new IOC shares to borrow for clients. The borrow has run completely dry. Here's what it means:
- Reduced selling pressure going forward as no or limited new shorting is possible
- Possible forced call ins, meaning purchases will be forced, sending the stock higher
- Deal announcement or even a rumor sends the stock much higher than most think is possible. The gun is fully locked and loaded heading into IOC's biggest catalyst ever
Very good news. I expect we start going higher followed by a parabolic acceleration.
Though true for those short LEGALLY, leave no doubt that there are many NAKED crooked shorts that really don't seem to care about showing up on the SHO list...Would appreciate a statement from the SEC that they are reviewing the undelivered shares of those listed ..Would have this stock well above 100 in a NY minute..
Now's the time for longs to have their brokers restrict lending of their shares. Every share restricted should almost equate to a new share bought given the current tightness. Very dangerous situation for the shorts.
Plus, natural gas stocks are surging. Look at CHK, GTLS, even CNX is going up. You'll see more thematic buying of IOC while the shorts are covering and the devoted longs keep pressing. Watch for the squeeze above $80 this week.