The volume is huge in part because the shorts closed their positions on bads news. Then came SP500-challenged institutional underachievers and bid the stock higher.
Here's a interesting report from the trenches on yesterday's trading in COMS as well as the rest of the techs:
Wrong! Tactics and Strategies: Cramer Reveals the Key to a Day's Trading
By James J. Cramer
12/3/97 11:54 PM ET
My partner, Jeff Berkowitz, smelled the squeeze first. Jeff talks to tons of people around the Street. He couldn't find anyone who wasn't short 3Com going into Tuesday's blowup. Everybody hates these guys, he told me. "It is much too heavily shorted. We gotta cover."
To which I told him, "Heck, if we gotta cover the %$&^$% 3Com, then we may have to cover every &^$^$&% short."
So, we covered 3Com at the opening, lest we fall victim to takeover rumors and short-squeezes. We then covered all our other relevant shorts. Sure enough, 3Com spent most of the day going higher, despite the number cuts, the downgrades and the general all-around hatred for this former darling networker. So did the rest of tech, as well as much of the rest of the market, although the averages didn't show it.
For a day we looked like geniuses!!!
PTB |
