As everyone probably realises, the KRY share price kicked up 40% today on higher volume, while GRZ traded in its traditional uninspired manner. The short interest in KRY has dropped very significantly in the past month and it is now down to an almost insignificant 0.8% of the float which would take just 1.6 days at normal volume to cover.

http://www.shortsqueeze.com/?symbol=...

Even though it has reduced the GRZ short interest however is still 4% of the float and would take 19.2 days to cover.

http://www.shortsqueeze.com/index.ph...

It is possible that the early uptick in KRY's price has worried the remaining shorts and they rushed to cover causing the price to rise as few holders would sell at this time with the rising gold price and the possibility of permit news. In other words it was a mini short squeeze caused by lack of shares on offer that triggered the rise.

A similar thing could happen in GRZ but it seem unlikely while the ask side seems to have a fair amount of stock offered even though the sellers don't seem inclined to move down to the bids a cent or two lower. In many cases some of those offers to sell are kept in place by professional accumulators who also keep bids just under their "offer to sell" and so capture the weak hands as they capitulate. I suspect that the presence of those offers is keeping the shorts complacent. However any news real or not, would cause that stock at the ask to vanish and that in itself could panic the shorts who have a much larger problem with GRZ than they did with KRY.

Hopefully nobody has left any "high" sell orders in the market "just in case". They could easily be overrun if the shorts suddenly see that their nice little profit is rapidly turning into a loss.....