All of the ingredients are there for The short squeeze...  Tested the new higher low.

 

Shorts Interests now in losing territories for 22 days... 

 

SP up since May despite more than doubled short positions.  Strong consolidation for approx. the last 4 months.  The Short Interests are stubborn, but the Longs are even more. 

 

The triggering event (not necessarily a news) can come any day.  I thought that the short squeeze would come sooner, but is still very likely with SIR > approx. 15 days.   The positive news are also cumulative and at some points their weight will shift the balance.  Sideliners will miss some of the early jump...

 

Alumina1

 

 

Yup! That's the chart all right, and as
 

| posted on 1/29/2013 10:36:54 AM | reads: 135 | overall quality: 3

 

Yup!

That's the chart all right, and as a swing trader or long term holder it's a beautiful thing. As a swing trader you can play the range so long as you recognise that the entry point moves a little higher on each cycle. As a long term holder, all you need to see is that bottom line continue to rise steadily upwards to know that at some point the short interest will have to fold.

Smart money is playing this trade both ways, swing and long. For those thinking of risking their long term holdings to play the swing a little caution would be prudent. At some point ORT will break out, and upwards, on the short squeeze of all short squeezes and then you'll have missed it.