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Technology Stocks : JDS Uniphase (JDSU)
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To: robert b furman who wrote (21500)8/30/2001 7:15:18 PM
From: Jacob Snyder  Read Replies (2) of 24042
 
re: upon covering (assuming at the bottom) overall margin should decline quite severely.....there should be some powerful purchasing power

Actually, it's a pretty safe assumption that the peak of short covering will not happen at the bottom. The peak rate of new short positions being initiated, will happen at the bottom. And then they will be covered later, at higher prices. This is the mirror image of what happened last year, when long positions peaked, and short + cash positions troughed, as the market peaked. The crowd consistently gets it wrong.

I sold my last short position (QCOM puts) today. From here on down, I will only initiate new long positions, in widely-spaced increments. If I get it right, I'll be back to 100% long (as I was in early January, and again in early April), just as short positions peak.
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