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Strategies & Market Trends : MDA - Market Direction Analysis

SPY 694.04

+0.7%

Jan 9 4:00 PM EST

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To: Boplicity who wrote (79413)	6/30/2001 10:59:57 PM
From: t2	Read Replies (1) of 99985

Boplicity, I am bullish on market direction near term but very uncertain on near term earnings. My reasons for buying right now are many. Chief among them is.... What makes me bullish is the ever increasing short interest. I checked the NYSE tech stocks today. Many tech names that I have followed, all show increases in short interest in June. In addition, trading volume seems to be dropping..meaning that short ratio is going up as well. Nasdaq also hit highs in short interest in June; what I find interesting about that is the increase is greater in larger stocks than the smaller caps. To me that means more dollars overall are being committed to shorting. It is normal to see the larger cap stocks trade at higher prices compared to small caps--which tend to be in the low dollars($1 to $10) as a general rule. That is why I feel that the short interest in June understates the actual dollars committed on the short side even though the number of shares short is at a record. The short interest, window dressing and many other reasons make me very bullish on the technology stocks near term. Have not decided on the long term. Wait a minute...you are supposed to be on vacation. I bet it is one very interesting trip. Have a good time.

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