YEEHAW CANDIDATES Message Board

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Strategies & Market Trends : YEEHAW CANDIDATES

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To: Galirayo who wrote (20084)	11/5/2006 10:47:23 AM
From: Ken W	Read Replies (1) of 23958

Ray 8 days to cover is simply calulated, as you said, by average volume per day. Most of the current short position could be covered in 1 day with large volume. It depends a great deal on who is short...if retail is the culpert then I'd expect a shorter time frame higher volume cover. Professional instiututional trading desks get a little less flustered and use upside stops to take them out the same way that we set stops to the downside to protect profit or capital. IF it is strictly market maker firms that are short then there will be no spike as they will keep the stock under pressure all the while covering their naked position with little effect on the stock price..This happens particularly in thinly traded stocks...you know, where the ask size is showing 1k shares and 5k blocks are going thru at the ask with no bump... Ken

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