Hi IHSC,
Yes, I have encountered problems finding shares to short. KKD in particular is probably difficult because it is so heavily shorted already---55% of the float! In fact, KKD has one of the highest short ratios I have seen in a long time: it would take a full month worth of trading volume to cover all the shares currently held short!
This, by the way, makes KKD a very good potential long position once the bottom is in place, and that may well be happening here:
stockcharts.com[w,a]daclyyay[dd][pb50!b200][vc60][iLp14,3,3!La12,26,9]&pref=G
139.142.147.218
As you probably know, that's because when KKD begins to rally, increasing numbers of shorts will get squeezed, and the sheer volume of shorts can fuel quite a strong rally as they cover. The stops will tend to trigger around the even-dollar marks... so here's one stock where it could be very useful to watch the ticker as it approaches the even dollar marks where shorts' stops are likely sitting. You'd be looking for a whole lotta green suddenly as the trades go off at the ask.
Anyhow, KKD looks to me like it may well be putting in a bottom now. I think I mentioned this in a previous post, not sure....
That doesn't necessarily mean it will rally----it could chop around indefinitely in a sideways trading range----but it DOES mean that KKD makes it to the long watch list, and I'll be looking for signs of increasing relative strength, a trend (up), technical momentum, and volume buying at the lows.
Obviously right now KKD is overbought with technical sell signals in place, so a long position now would not be wise. But a potential reversal point would be the 50 sma below.
There are definite signs of bullish divergence in the technicals now; look particularly at this weekly chart:
139.142.147.218
T |
