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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: MJ who wrote (7405)	4/6/2005 3:58:16 AM
From: Walkingshadow	Read Replies (2) of 8752

Hi MJ, One last thing about RNWK, I keep forgetting to mention this, and it is important. RNWK has a lot of shares held short. There is a significant chance of a short squeeze for that reason. 12% of the float is held short, which amounts to over 7 days' trading volume. finance.yahoo.com That makes short positions more risky, and long positions less risky. But this is another reason why I think the breakout when it comes will be to the upside. In fact, the periodic rallies in RNWK may well represent short squeezes, particularly the last one. The volume pattern is consistent with that anyway. 139.142.147.218 Note that this weekly shart is showing buy signals here. So while I might be correct that RNWK will first trade down to test support before moving up towards that $7 resistance level, a break to the upside looks highly likely to me. In thinking this over some more especially in light of the short ratio, I don't think I would short this stock. There are too many dogs out there without that kind of risk that can be shorted with a far better risk/reward profile. Why take a chance on a stock that looks very likely to make a strong move up in the near future? T

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