RE: RE: RE: RE: Another run comingCaramel55;
I am an amateur at this but have based my opinion on the work of Alexander Elder. Basically, he advises to be careful of placing stops at obvious levels because that is where they bunch up and the pros, who are not blind, see the stop losses establish a short interest, and (Whether by algo or by simply looking at the orders) can gun for them and try to trigger stops with false breakouts. Once the pros go short, they then give it a push, trigger the stop orders and this sets off a cascade of stop orders. This exhausts new money, fleeces the retail lambs and sets another period of consolidation.
ATC, in a posting on Feb 20 provided the short positions on SVC as follows
fyi
https://www.dailyfinance.com/company/sandvine-incorporated-ulc/svc/tor/short-interest
|
Date |
Ratio |
Shares |
| Feb |
02/16/11 |
0.20 |
105,648.00 |
| Feb |
02/01/11 |
0.10 |
62,039.00 |
| Jan |
01/17/11 |
0.10 |
52,076.00 |
| Jan |
01/04/11 |
0.00 |
9,068.00 |
| Dec |
12/16/10 |
0.30 |
148,136.00 |
| Dec |
12/01/10 |
0.50 |
147,866.00 |
Note the build up of shorts in mid-Dec and Jan. The pros will short, drive the stock with heavy selling (over a Million shares recently) and then cover. Pros have deep pockets and are better organized. Likely, they search for stocks that have just run up a certain amount, anticipate that the bulls are fully committed and then pounce, take profits and go to another similarly-patterned stock.
I have no inside information on this, just my opinion from reading Elder and other authors on trading techniques.
Regards