Hi Monty; Well there is another force beside the Plung Protection
team, and they are desperate to send the market down, if they
fail then the money they lose, winds up in the Bull camp.
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Every one seems to think it's only the Bulls that run the market
up, but a lot of the money that winds up buying stocks at
ridicules values are the shorts themselves. Over the last two
years checking short interest on stocks, I found that mostly
no one pays more for stocks than the shorts, almost every peak on the tulip stocks has been shorts covering.
They pay through the nose right at the top and then turn
around and cry about people who would pay so much for stocks.
Percentage wise shorts have put more money in and took less out
than the bulls. Strategically they are at a disadvantage but don't
want to recognize it.
Now I'm not talking of the S/MMs..who often hold short positions
like this morning on the Gap down you got to know the specialist
and market makers saw it coming, and got short before any one
else, even the brokerage houses will take up short positions
before they handle clients short sell orders.
So clients or out siders that short in a down market are always
holding the short end of the stick, the S/MMs see order flow,
both long and short, they can start covering ( buying ) from
shorts wanting to short, much of today's late kick up was
S/MMs not wanting to be short over the weekend, and closing
out their positions to the more speculative shorters.
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You got to know investors don't trade like this or create the
volatility, most people don't run to the market with every wind that
blows, this is short term speculators working some
plan they consider better than the other side.
In the longer run the S/MMs win most of these battles.
Jim
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