When vendors tend to be caught in a rising market. They buy their particular way-out long place. That leads to even more rise in cost and purchasing is paniced on quick roles. To avoid this lengthy is purchased and brief is sold whenever momentum enables. Reference bull squeez
a predicament occurring whenever vendors are trapped in a rising market. If the pressure from increasing losses supports, they start to get their particular way out of these dropping positions which fuels the upward cost energy and additional anxiety buying one of the shorts which are still available in the market. An expert investor will often attempt to make the most of a bear squeeze by purchasing very long to the upward price force and then attempting to sell brief when the momentum begins to weaken. He will after that drive the price to a correction point, take his revenue, and reenter industry as a buyer. Compare to Bull Squeeze. See Bear-trap; Bull Trap; Whipsaw.