A situation that occurs when buyers are trapped in a declining market. When the pressure from increasing losses mounts, they begin to sell their way out of their losing positions fueling the downward price momentum and further panic selling among the longs that are still in the market. A professional trader will sometimes try to take advantage of a bull squeeze by selling short into the downward price pressure and buying long 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 seller. Compare to bear squeeze. See Bear Trap; Bull Trap; whipsaw.
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profit on ordinary activities before tax
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