I don't short regularly, and when I do, it is only large cap stocks over $75 and volume over 5 million shares a day, and for which there is a susbstantive and prolonged reversal in place. An example would be GM in May at $89, AOL from the $120's to low $90's, KO in its obvious swing when it falls off its $70 upper resistance again early this month. There is substantial risk in shorting GMGC (and anything else) in my opinion. Plus, since greater profit lies in long positions, and since I am long and would like to see that movement, it would be counter-productive to short it. As for the run up from $1.50, I respect that a stocks price reflects what people are willing to pay for it, regardless of any other criteria. Once the market exhibits a buying/selling pattern, I attempt to take advantage of that, and always to the long side.
lastshadow |
