GIGM: Anatomy Of A Short Squeeze

(Click Directly On Chart For Better Viewing)

From yesterday:

"After studying this chart further, I really should title this post "Anatomy Of A Short Squeeze," because there were so many ways to get into trouble coming off the August 9.02 low."

I went with the "Anatomy Of A Short Squeeze" today, after yesterday's breakout :)

We can add #6 to these 5 ways that we discussed yesterday, that the Bears got themselves into trouble:

1. At August earnings, GIGM gapped higher toward the broken Bear Flag and Broken H&S Top and closed on a "possible" Bearish Long-Legged Doji Star. Anyone shorting because they thought that "gaps have to get filled" was in trouble.

2. Anyone shorting the bearish looking candlestick was in trouble.

3. Anyone shorting because of the overhead resistance from the two broken patterns, starting at 12.43, was in trouble.

4. Anyone shorting because of the "Bearish" Golden Cross of 50/200DMAs was in trouble.

5. GIGM then went into a Rising Channel/"Bear" Flag. Anyone shorting because they think that those ALWAYS are bearish was in trouble.

6. Anyone shorting the Bearish Wofle Wave/Rising Wedge thinking that those ALWAYS are bearish was in trouble.

As we now know, GIGM broke out to the upside on the Roth upgrade, and CLOSED above the breakout. There's never any guarantee that GIGM will continue higher, but as I said yesterday, when a breakout like that occurs, like GIGM did breaking out of the green channel in September on the chart that I posted yesterday...GET OUTTA THERE, if you're short.

RIMM had the same UPSIDE Bearish Wolfe Wave breakout on September 18, and the short squeeze gets more painful this morning, with Goldman adding it to it's "Conviction Buy List." Mercy!

GET OUTTA THERE when the market tells us that we're wrong.