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Strategies & Market Trends : Ask DrBob
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To: stats77 who wrote (59083)5/8/2002 12:04:39 PM
From: Louis V. Lambrecht  Read Replies (1) of 100058
 
stats - shorts squeeze. As many other traders, shorts also use stops. Usal stops are mostly set at 2.5 or 3% of the entry, some give more room to 5%.
On the SPX, there was a floor 1084ish, broken Monday.
You can expect traders to have shorten the break and entered shorts in a 1064- 1048 range.
1048 * 1.03 = 1080
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