RR:
For some reason, this has a ring of familiarity to it. (g)
Normally most intelligent investors are (or ought to be) nervous when short, (especially if there is a big short position). This is as it should be, and tends to keep one agile. The neat thing about MU is that it has been driven up relentlessly by the momentum types, without supporting fundamentals. When the fall comes, it will be precipitous.
My thinking up until the last two days has been to continue to slowly "scale" into a MU short position ("nibble"), The possibility of a short squeeze - short panic has been the primary reason for that stance. Once underway, a short panic usually continues until the supply of "cannon fodder" (frightened shorts) is exhausted, and a stock price can really take on some momentum as we all know. From my perspective, those who can't take the heat are probably now out.
The rapid rise in the short position and the volume shift, smacks of a more professional and deeper pocketed involvement. With the unfortunate current political events now beginning to underline the fact that a semi bankrupt IMF is not going to receive significant funding with which to bandaid S.E.Asia, (it would never have come close to being enough in any event), the markets will begin to discount a spreading of the Asian contagion. Can't think of a better place to be, (except perhaps YHOO), as the weather worsens. (g)
Best, Earlie |
