LFVN setup just became EVEN BETTER (SEC Rule 201)

AI Summary

Author presents a bullish LFVN short-squeeze setup, arguing SEC Rule 201 will amplify an already tight short positioning and expects a big move tomorrow.

LFVN — LONG aporter0131 claims LFVN is set for a major short squeeze because short interest, cost-to-borrow, days-to-cover and volume conditions will be reinforced by SEC Rule 201 tomorrow. The mechanism is that after a 10% intraday drop Rule 201 forces short sales above the National Best Bid, removing aggressive bid-slamming, creating a possible floor, and accelerating short covering. The stated catalyst is the Rule 201 restriction taking effect tomorrow and the author expects a big day of green. No explicit risk is stated.

One of the best short squeezes in recent history is upon us and getting juicier.

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In addition to the SI, CTB, DTC, Volume, etc.. tomorrow LFVN will also be subject to the SEC Rule 201. Here are details about the rule:

How Rule 201 Works

* **The Circuit Breaker:** The restriction triggers if LFVN drops by 10% in a single trading session compared to the previous day's closing price.
* **The Restriction:** Once triggered, any short-sale order must be priced **above** the current National Best Bid (NBB).
* **Duration:** The restriction applies for the remainder of the trigger day and the entire following trading day.

\*\*This makes the setup **EVEN BETTER** if you can believe it. One of the best short squeezes in recent history is upon us and getting juicier. 

  
How this makes the squeeze even juicier:

This restriction enhances a short squeeze by introducing the following dynamics:

* **Limits Downward Momentum:** Short sellers cannot aggressively "slam the bid" to force a stock’s price lower. They are forced to post non-marketable orders on the ask or wait for upticks, effectively removing a primary source of heavy selling pressure.
* **Creates a Floor for the Stock:** By preventing short sellers from accelerating a steep decline, the rule acts as a stabilization circuit breaker, allowing long buyers and short-covering rallies to establish a firm bottom. 
* **Increases Execution Risk:** Because they are not allowed to execute their shorts aggressively on a downtick, short sellers are severely limited in their ability to suppress the stock while it is attempting to rebound. 
* **Accelerates Buying Pressure:** As the stock's price naturally moves upward during a squeeze, short sellers under this rule cannot quickly establish new short positions to hedge or control their losses. This lack of downward-pushing supply frequently causes the price to run up much faster.

  
I know I have been blasting LFVN down everyone's throat.. but it's out of love. I hope this information finds you LFVN investors well and creates some excitement for those on the fence. See you all tomorrow for a big day of green.

Ideas

u/aporter0131 Reddit r/smallstreetbets

SEC Rule 201 short-sale restriction may intensify LFVN short squeeze.

aporter0131 claims LFVN is set for a major short squeeze because short interest, cost-to-borrow, days-to-cover and volume conditions will be reinforced by SEC Rule 201 tomorrow. The mechanism is that after a 10% intraday drop Rule 201 forces short sales above the National Best Bid, removing aggressive bid-slamming, creating a possible floor, and accelerating short covering. The stated catalyst is the Rule 201 restriction taking effect tomorrow and the author expects a big day of green. No explicit risk is stated.

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