I shorted YHOO *on paper* in the low 30s last year, when I was certain it was WAY over-valued. I was prepared to feel badly that I "coulda, shoulda, woulda" made a lot of money on it, if only I'd had done it for real. I do understand and agree what you wrote - I always have a stop written down for each short I enter.
However, I see a vast difference between YHOO and SIEB. The former is an unknown - *no one* really knows how to value the company & its future. The latter is very well-known, and obviously it is VERY over-valued.
I am positive that a short of SIEB would turn out to be highly rewarding, given several weeks or months. The obvious problem being, as we know, that you might not be able to hang on to the shares for more than a few days.
That said, I see from a day chart that my short at 45 very likely would've gone off, and I'd now be in the black. ;-) Of course, *had* I actually done it, it would now be over 50 ... we all know the remarkable power we each have to control the markets (in the direction opposite that which we desire).
Ken |
