Bear squeeze

Bear squeeze,

Definition of Bear squeeze:

  1. A bear squeeze is a sudden change in market conditions that forces traders, attempting to profit from price declines, to buy back underlying assets at a higher price than they sold for when entering the trade.

  2. A firm clasp or embrace, a bear-hug (rare).

  3. The financial pressure experienced by ‘bear’ speculators when prices rise; specifically the necessity of covering short sales at a loss.

  4. A situation that occurs when sellers are trapped in a rising market. When the pressure from increasing losses mounts, they begin to buy their way out of their losing positions which fuels the upward price momentum and further panic buying among the shorts that are still in the market. A professional trader will sometimes try to take advantage of a bear squeeze by buying long into the upward price pressure and then selling short when the momentum begins to weaken. He will then ride the price back to a correction point, take his profit, and reenter the market as a buyer. Compare to Bull Squeeze. See Bear Trap; Bull Trap; Whipsaw.

  5. A bear squeeze is a situation where sellers are forced to cover their positions as prices suddenly ratchet higher, adding to the burgeoning bullish momentum.

How to use Bear squeeze in a sentence?

  1. A bear squeeze can be an intentional event precipitated by financial authorities, such as central banks, or it could be a byproduct of market psychology where market makers, taking advantage of waning selling pressure, intensify their buying efforts to push that security's price higher.
  2. A bear squeeze is a situation where sellers are forced to cover their positions as prices suddenly ratchet higher, adding to the burgeoning bullish momentum.
  3. Contrarian traders accumulate long positions in heavily shorted assets in the hopes that a bear squeeze might be in the offing.

Meaning of Bear squeeze & Bear squeeze Definition