Now THAT’s a short squeeze

[drunkle]

i played it as a range-limited gamble. that is, bought calls when it was down in the 14’s.

gonna let it hit 20 or so and start buying puts.

the news doesn’t mean shit. the facts don’t mean shit. cfc stock is being completely gamed/milked. imwo.

[kewp]

I think some of you guys missed the point of the opening post.

One of the few ‘sure things’ on the market is for the big money players to snatch up a stock that is being widely shorted. This forces the shorters to cover their position, driving the stock up further. Then big money dumps it.

This can (and is) repeated ad-nauseum as companies spiral down the drain. As long as they have enough blood left to attract the vultures, the vulture-eaters will have plenty to dine on.

http://www.investorwords.com/4559/short_squeeze.html

[kewp]

I think some of you guys missed the point of the opening post.

One of the few ‘sure things’ on the market is for the big money players to snatch up a stock that is being widely shorted. This forces the shorters to cover their position, driving the stock up further. Then big money dumps it.

This can (and is) repeated ad-nauseum as companies spiral down the drain. As long as they have enough blood left to attract the vultures, the vulture-eaters will have plenty to dine on.

http://www.investorwords.com/4559/short_squeeze.html

[kewp]

I think some of you guys missed the point of the opening post.

One of the few ‘sure things’ on the market is for the big money players to snatch up a stock that is being widely shorted. This forces the shorters to cover their position, driving the stock up further. Then big money dumps it.

This can (and is) repeated ad-nauseum as companies spiral down the drain. As long as they have enough blood left to attract the vultures, the vulture-eaters will have plenty to dine on.

http://www.investorwords.com/4559/short_squeeze.html

[HereWeGo]

Actually I didn’t intend to make that point, but the point is still well made.

I remember not so long ago when IMB was floating around $24 after seeming to hit resistance at 22.50. Then it just slowly sank, day after day, until it reached its current level.

The takeaway, from my POV, is that you have to wait until the action makes absolutely no sense, where you’re ready to throw up your hands and go long just to get a piece of the bubble action. That’s the time to buy the puts/short the stock, assuming the fundamentals associated with the company have not changed. Also, once the puts/shorts start to pay off, always take profits on the way down. Shorting is always a trade, never an investment.

[HereWeGo]

Actually I didn’t intend to make that point, but the point is still well made.

I remember not so long ago when IMB was floating around $24 after seeming to hit resistance at 22.50. Then it just slowly sank, day after day, until it reached its current level.

The takeaway, from my POV, is that you have to wait until the action makes absolutely no sense, where you’re ready to throw up your hands and go long just to get a piece of the bubble action. That’s the time to buy the puts/short the stock, assuming the fundamentals associated with the company have not changed. Also, once the puts/shorts start to pay off, always take profits on the way down. Shorting is always a trade, never an investment.

[HereWeGo]

Actually I didn’t intend to make that point, but the point is still well made.

I remember not so long ago when IMB was floating around $24 after seeming to hit resistance at 22.50. Then it just slowly sank, day after day, until it reached its current level.

The takeaway, from my POV, is that you have to wait until the action makes absolutely no sense, where you’re ready to throw up your hands and go long just to get a piece of the bubble action. That’s the time to buy the puts/short the stock, assuming the fundamentals associated with the company have not changed. Also, once the puts/shorts start to pay off, always take profits on the way down. Shorting is always a trade, never an investment.

[kewp]

Ah, so your strategy is to short when no one else is, then take your profits when everyone else jumps on the bandwagon?

If you can time it, that seems to make sense.

[kewp]

Ah, so your strategy is to short when no one else is, then take your profits when everyone else jumps on the bandwagon?

If you can time it, that seems to make sense.

[kewp]

Ah, so your strategy is to short when no one else is, then take your profits when everyone else jumps on the bandwagon?

If you can time it, that seems to make sense.

[drunkle]

kewp, you make it sound like a fortune cookie.

cfc reported a loss of twice the ‘estimates’. what does that mean? does it mean the company is in good shape?

hell no. the stock is being gamed. stocks in general are gamed. forgetaboutit.

[drunkle]

kewp, you make it sound like a fortune cookie.

cfc reported a loss of twice the ‘estimates’. what does that mean? does it mean the company is in good shape?

hell no. the stock is being gamed. stocks in general are gamed. forgetaboutit.

[drunkle]

kewp, you make it sound like a fortune cookie.

cfc reported a loss of twice the ‘estimates’. what does that mean? does it mean the company is in good shape?

hell no. the stock is being gamed. stocks in general are gamed. forgetaboutit.

[HereWeGo]

kewp-
I believe in slowly taking profits if your prognostication proves correct. Holding a bear position while trying to hit a home run seems suicidal to me.

The entry point is hard, I know of no magic formula on that one. Jumping on the band wagon once the down trend is obvious is awfully dangerous.

As for CFC or IMB, I can’t imagine shorting those companies between now and the Fed meeting. Then again, what if the Fed holds? Both companies could fall precipitously in that scenario. Are you willing to bet that this time, Bernanke will go against Wall Street, after he absolutely torched the bears in August and September?

[HereWeGo]

kewp-
I believe in slowly taking profits if your prognostication proves correct. Holding a bear position while trying to hit a home run seems suicidal to me.

The entry point is hard, I know of no magic formula on that one. Jumping on the band wagon once the down trend is obvious is awfully dangerous.

As for CFC or IMB, I can’t imagine shorting those companies between now and the Fed meeting. Then again, what if the Fed holds? Both companies could fall precipitously in that scenario. Are you willing to bet that this time, Bernanke will go against Wall Street, after he absolutely torched the bears in August and September?

[Author]

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