You can do a search for ETLS on this blog and see I have been high on this stock all year. Today's action turned my bias from bullish to uber-bullish. ETLS broke firmly out of its ascending channel to close impressively at the high of the day. With almost 80 million shares trading hands the market makers, in an effort to maintain an orderly market, were likely selling shares they did not own, essentially naked shorting the stock. Little did they know that 102 million of the 300 million authorized shares are locked up and accounted for with a recently filed SC 13D/A. The rest of the shares have been under some serious accumulation the last several months.
We saw a very similar situation with VCTY (do a search for VCTY in this blog and you will see what I am talking about). With VCTY market makers were filling orders with shares they did not own, as the share volume was not representative of the share structure. When these market makers began to realize their faux pas, they scrambled to cover their positions in the open market, driving the price of VCTY up over 3000% when all was said and done.
Could ETLS see that type of run? Absolutely. Another 80 million share day will leave the market makers clamoring for share's they should have never sold in the first place. These plays give the retail investor a chance to enact revenge on the same market makers that have been skimming dollars out of their pocket on a daily basis.
This could be some short squeeze to behold. ETLS is a must watch going forward.
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