The simple answer is that buying volume will have
Post# of 39368
The simple answer is that buying volume will have to outpace selling volume. Buyers will have to hit ask on large enough volume and blast them off of the resistance levels.
For a model of what this may look like you can take a look at the time that naked short selling financial stocks was temporarily banned.
http://seekingalpha.com/article/85882-mother-...t-squeezes
I think that it will be something like that to start with, but then the bears will try to pick a higher point to reshort like they always do. In other words, they might concede 7 cents but then take everything they have to short 13 cents, the 52 week high. In that case I think the chart will be something akin to shorting AAPL at 400 last year. It got a few pull 10% pullbacks but the downtrend was never broken and it just kept climbing higher. So they will have to keep trying to push it down and commit more at 13-15 cents until once again they get blasted out of the position. When Treaty starts to clear 500 bpd, let alone 1000 bpd, there is no way that a couple of 3rd tier hedge funds and some market makers will able to withstand the buying power of real institutional investors, 100 million + AUM hedge funds, and Texas oilmen who can cut a million dollar check at the drop of a hat.
The short sellers and the bashers are in a lot of trouble. I was checking out their posts on iBash, and I have to agree with what someone said over there, that it sounded like they got on a conference call after the break of the 50 DMA, then came back with the same idiotic talking points to coincide with the bidwhacks.
This reminds me of 2003 when the US was massing forces to invade Iraq. The Iraqi propaganda minister kept talking smack, saying things like they will destroy the US forces etc. Then, when our boys stormed through their lines and were capturing city after city, the minister denied the presence of US troops on Iraqi soil and it just got ridiculous. This is what the bashers are facing, and soon enough they will meet a fate similar to Hussein and his henchmen. Their days are numbered.
[IMG]http://i.imgur.com/SfO4F.jpg[/IMG]
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