Gediminas Jasionis

ETotalSource, Inc. (OTC:ETLS) Rallies on Short Squeeze

by Gediminas Jasionis April 12, 2010
ETLS_chart.png
ETotalSource, Inc. (OTC:ETLS, ETLS message board) stretched out to the news 52-week highs last week as the move started on a mysterious trigger.

The price had a 257% run in the last three trading days and is speculated to appreciate even further as short squeeze stays in play. The trading volume remained 4 or more times the daily average for the whole rally.

Penny stock chaser was the one stock newsletter service to bloat the rally further. They picked it up shortly after the initial burst and got quite a few newsletters out to day. Traders, on investment forums like Ihub, were actually eager to see this stock promoted and were sending suggestions to the stock promoters.

Etotalsource_logo.jpgShort squeeze was in play for the most of the move. As described in investopedia.com, that is a situation when a lack of supply and a huge demand pushes the price up. That is exactly what is happening.

Another feature of short squeeze is the forced liquidation of short positions as they turn loss making. On Tuesday, when the rally ignited, 34% of the volume traded was shorted. The day before depicted a nearly 60% short volume, which made this stock a good target for a short squeeze.

Comments 0

Type the characters that you see in the box (5 characters).