Hear ya. Yesterday there was huge shorting in the afternoon as if they thought that the fed meeting could be spun by shorting the market as a statement. So predictable, today NO Sellers on the weakness, volume is so low on down days.
Short sales are not sells by investors, shorts are IOUS to buy and as they accumulate they become far more risky when the stocks they are shorting have liquidity drying up.
Two important things are soon to happen, Oil prices will continue down, and some Tax relief is going to get passed. Oil prices will aid in profit recovery and tax reduction will fuel entreprnuership which is the true engine for growth. If we get capital gains tax cuts we'll see an impact on the defecit by increased collections from trading (which made the surplus in the clinton years).
Supply is tight, the IPO market is weak, which means that those companies growing will be catapulted forward in a drive to create new liquidity. FLIR is a perfect example Ebay should be next.
During this current phase of the capital rotation cycle, Many stocks who were shorted into hell, despite fundamental growth and increased relevance to the emerging business cycle, will far outperform the market, as the discounting mechanism was an attempt to get control of supply of known growth candidates. This churn has already reversed, and now there are literally hundreds of imbalances beginning to be corrected.
Know the difference between Selling and shorting. Its the great obfuscating mechanism that skunks many people, metrics measuring money flow, and Accumulation Distribution, are often not telling the truth, because they
routinely use a supply demand metric which does not differentiate between selling by investors and IOU's opened by bears on faith that the market is going down no matter what.
Free floats in my universe are wound tight. |
