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Strategies & Market Trends : MDA - Market Direction Analysis
SPY 689.490.0%Jan 8 4:00 PM EST

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To: Michael Watkins who wrote (69971)2/22/2001 10:36:04 AM
From: Psycho-Social  Read Replies (1) of 99985
 
Squeezing the Shorts:
The implication was of vulnerability. I believe that the short-sellers can be forced to cover quickly in any powerful rally because:
* they tend to have a shorter-term orientation than the average "long" investor.
* many of them employ leverage and "stops" which require closing out their positions if the Market goes against them.

I don't short stocks or the Market because my variable annuity doesn't allow it. If I could have, I would have used a vehicle like Rydex Ursa or Rydex Arktos last year a couple of times, but without leverage. I'm OK, you're OK.
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