Given that during the last few days, afternoons have been marked by margin-selling pressure in JNPR, TODAY will most likely NOT have margin selling/liquidations this afternoon because yesterday's strong close on a +10 gain has provided relief for margined JNPR holders who would have had margin calls, but due to substantial gains yesterday, their margin calls disappeared.
Now, the situation is in reverse: The recent hefty gains in JNPR have caught shorts by surprise, especially those who shorted at or below $80, thinking it would go to $40. Those shorts will now be under margin pressure.
Because shorting is a riskier game than going long (shorting = potential for infinite losses, whereas Long = potential to for your stock to go to zero), shorts are more apt to panic when the stock moves up because they stand to lose more.
Not a good time to be short if we hold these nice gains today, shorts will want to cover tomorrow, expecially ahead of Tuesday's Dell'Oro report on Core Router Market Share which will show JNPR eating CSCO's lunch!
Keep in mind also that the stock market is closed on Monday, President's Day holiday, so Friday is the only trading day for shorts to cover and take profits before that report comes out.
Risky business.
Remember: "The TREND is your FRIEND... until it ENDS." - And the downtrend is ending. |
