Hugh; "When a wise man and a fool argue, they become equal, and the
fool knows it."
Let the shorts short, for them to win they must vanquish the longs,
as I write this I see covered calls being writen. The writers
for the most part are locking in a profit, of about 20% or
better per year..the buyers are looking for more than that.
Thing is thoes writes mean that stock won't be sold.
Most of the volume we see is not stock trading, it's borrowed
shares, the real battle at this time is not being fought between
the bulls and bears, it's between the bears themselves trying
for positions..this always in the long run helps the bulls
case. While the bears fight it out among thenselves out for
position, the Bulls are helping one another..some are writing
calls, locking in some profit, others more bullish are buying
looking for better returns. Others yet are writing puts, to
offer support , so on the option side..( longer term ones )
a bullish case is being made. Shorter term it's hard to tell,
and no-body really knows. Least of all the ones who argue about
it.
--------------------
My only word of caution to any shorts is that they understand
how the brokerage houses short and how they cover.
A history of the short interest on CPQ shows 2/3rds
of them getting burned in the past. If they understand the odds
and how the brokerage house uses in house data to keep the
edge. Then the more they short the more they will help any one
who has some dry powder, most funds and such are not on margins
at this time, many have cash looking for a fire sale.
--------------------------
Jim
|
