<<Considering the price barrier of shorts at 29 3/4 is HUGE..
If 29 3/4 is broken the short covering action should push the price above 30-31 level very quickly.
Just a thought.>>
Well, I don't think most of shorts are intelligent enough to sell at
or around $29.75. Instead, they are in some kind of distribution, e.g.
uniform dist., or maybe normal dist., and the prices ranging from
$26 - $29.75 with $27.5 at the peak if choosing normal dist.
However, $29.75 is a psychological barrier, which represents a yearly
high. Hence, from short position's viewpoint, the current level already
provides them enough uncomfortable feelings, which much easier to
trigger any covering back action. We need an event that may be
big enough to trigger shorts cover's chained-reaction. I enjoy the current moment
of shorts terrible feelings, similar to that shorts enjoyed the moment
when the longs suffered about six months ago. Hence, I wouldn't
mind the price picking up slowly since the longer it stands at this
level, the more shorts will suffer. Hmmm..., it's time for the long to
enjoy the long last-waiting victory.
Phil |
