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Strategies & Market Trends : Rande Is . . . HOME

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To: Mike M who wrote (45857)1/19/2001 11:14:41 AM
From: Rande Is  Read Replies (1) of 57584
 
Mike, yes, at this point the only ones getting squeezed are the shorts. But I don't see signs of any S-DMLs forming. . .we would need a considerable gap down ahead of these upward days. . . and closes near the highs. However, it appears that beginning on the 8th, we had an
S-4DML. I'm still trying to see the SDMLs as they occur, but not accustomed to looking upside down at things. Perhaps someone may lend a hand in looking for such signs. . . because it was classic.

And the subjective view would infer that there are more traders in trouble with margin on the short side than on the long side. And with as many stocks as we've seen in the past week that have been making 20 to 40% gains per day. . . I could see some considerable liquidations on the short side. . . remember liquidation on the short side may be MORE than all your money. This is the sort of thing where you hear about people losing their houses, going into debt or heaven forbid. .going postal.

It may be a while before we see any significant 4DMLs on the long side. . . . which is fine with me. Bulls have everything ahead of them at this point. Bears have it all behind them. And that is the single most important difference that is driving these markets in my opinion.

Best wishes and thanks for the good question.

Rande Is
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