Michael,Jaime: thank you for your help regarding the "shorted shares".
Two days up are often followed by a pause (especially in this tough bearish market)... at times with some retraction. In those cases, I often go deeper in the underlying technical analysis fundamentals of the equities I am holding. I always look at the Positive and Negative Volume indexes (with many other indicators of course). But for SMU we can see (homemade chart enclosed in this link..
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that NVI looks as if it finally wants to return to a positive mood. NVI is not the greatest indicator, but I have found, occasionally, that it can show a change of direction that allows profitable trades.
For newcomers to TA, NVI is an attempt at detecting what "smart investors are doing"... Interpretation of the NVI assumes that on days when volume increases, the crowd-following "uninformed" investors are in the market. Conversely, on days with decreased volume, the "smart money" is quietly taking positions. Thus, changes shown in the NVI (remember that the NVI changes only on lower volume days) display what the smart money is doing. PVI is the opposite and reflect "uneducated, crowd following, investors".
When both, PVI and NVI, move in the same direction, the trend of the equity tends to be more solid.
In any case, I agree, Friday was telling as buying predominated most of the day, and some "dumping of stock" occurred at the end of the day (not much volume), when most indexes tanked. SMU will not go much higher at this point if a big bad bear crushes the market (IMHO). Future will tell.
Good luck to all.
FHG
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