deadzone, how can you ride out squeezes? As the stock price rises, you have to buy it back at a certain point. I think that shorting was much easier 15 years ago, before most trading was handled by computers. The emphasis on technicals has changed shorting from a bet on the direction of a company’s outlook to a casino where computers trade on every little swing, often making a winning idea turn into a loss.
As I said before, even though I am certain that builders and lenders will lose a lot of money, I am not certain that I can make money shorting them, under the conditions prevalent in today’s market. Only because of the way the exchanges work and the sophisticated players.
We haven’t heard from RS. I wonder if he changed his mind about shorting and is getting the put options instead.
