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What is up with AIG?

|Includes: American International Group Inc (AIG)

How about AIG?

Crazy. Crazy.

So, what is happening? Here is my take. We had some good news on Monday with the CEO coming out, and the company is starting to price in earnings. But that wouldn't be more than at top 4-5% on a normal stock. Well, enter the big guns...With this good news and the earnings coming up, we see a lot of big sellers start to cover shorts, which sets an upward swing.Then, that makes more and more short squeezes occur. At this point, the little guy starts to buy up on small 2-3% upward movements and sells off, pushing it even higher. The stock is sooooooo underbought for so longĀ  that this movement and process that should happen over several months, is happening all at once.

My take.

David Ristau
President, The Oxen Group
Oxen Newsletter Editor, Phil's Stock World