Patriot Coal (PCX) - Liquidity Smile Forming

PCX, which has almost 19% of its float short and scored a new FusionQI short signal recently.  Currently shares are consolidating  under resitance near their April peak and after a big volume, squeeze.  We would suggest shares will trace out a “liquidity smile,” a pattern where prices consolidate while volume shallows out before rising aggresively again, visually forming a smile in the volume bars if you will.  Liquidity smiles are a well documented and repititive pattern known to hard core quants.  We would suggest keeping PCX on the radar for a few days and if price and volume accelerate jump on it for active trading accounts.