Emblem Corp EMMBF

RE:RE:RE:Way Too Much Attention to the Short Position Here!

[ledrog]

Just a formatting note...your question appears as though I wrote it.  Make sure you put your part outside of the [/ledrog wrote] or whatever hashtag html code there is.

Insider positions versus short positions.....I think keeping an eye on short positions is even more important.  So often with stocks like EMC insiders buy their shares at a huge discount, and sometimes they get them for free.  If an insider decides to monetize some holdings after a big jump in the PPS, to a degree that should be expected.....

Bottom line is there is no 100% surefire way to know whether a stock will go up or down....if there was the market wouldn't function because eventually everyone would figure it out and then everyone would want to be buying and selling at the same time.  The markets would look like a football game with both teams lined up on the same side of the ball, with both everyone wanting to play offence or defence at the same time....

Bulls buy and soak up supply, bears provide liquidity by borrowing what the bulls don't want to sell and making it available.  And it works a lot of the time because retail doesn't pay attention to short selling, just to the share price.  They see the PPS fall (like EMC did after that strong opening day) and think "oh oh, things must be bad....it must be overvalued"....without realizing that almost 500,000 shares were borrowed during the first 4 days of trading and were dumped back into the market.

Its almost like seeing someone who's quick nimble and agile trip and fall......you might think the guy is a klutz.  But if you saw that the reason he fell was because someone yanked up a trip wire, then you would realize he isn't clumsy at all.....