May. 14 at 5:24 PM
$BMEA
PART 1 of 2 on the current market setup as I see it.
When analyzing BMEA right now there is a”Liquidity Bottleneck”; meaning the physical borrow pool is incredibly restricted at only 5,000 shares, down from 10,000 it the last couple of days.
FTD history shows a brittle clearing market. If a buying catalyst occurs, such as BMF-650 positive data with more than 5% weight loss, shorts cannot easily find shares to cover, which acts as a major accelerant. This accelerant will happen quickly and remain in play for at least 3 days. That’s because there is a “High Short Floating Base”. With 24.34% of the float shorted, a massive chunk of the traded stock must eventually be bought back. On top of that we have 8.0 Days to Cover for short positions. This means a squeeze would not be a one-hour flash event; it would likely play out over multiple trading sessions which I would estimate to be at least 3 days .
(Continued to Part 2 posted below)
