Few more sessions like today's and all the speculators will be back. Cash advances from credit card + full margin and they are back in business.
I certainly hope so Rajiv.
Funny as this might sound, I dont think shorters made too
much money on this 40% decline in nasdaq.
You short a highflier, worthless crappy stock @ 100, cover
@ 80 and wait for a bounce, it doesnt come. You force yourself to short more @ 70 with a smaller size, it drops to
60 where you cover. Then you try one more time with an even
smaller size @ 50, cover @ 40, and then watch in pain
as the stock drifts down to 20. :)
I guess that is why the market dropped as hard as it did,
there were no shorts to cover, noone was ready for this
big of a decline.
So IMO, contrary to popular belief, shorts did not make too
much money in the decline, they just didn't lose any.
(actually in some cases they did, some of the shorts I
follow on SI, were going long some internet stocks @ much
higher levels. I guess that comes from the fact that shorts
in a bull market are just contrarians after all and when
market turns bearish, they turn bullish?, not sure really,
dont have any other explanation for going long crap @ any
price.)
Well, this turned out to be somewhat offtopic post. I
always valued your opinion and sure hope the gamblers
come back to the casino. :)
regards, |
