Roger, if you look back in the past year when the internuts get hot, you'll see they run like hell for maybe 3, or 4 days max. The last day tends to be the nuttiest, with a huge jump in price. It's like the market is being flooded with market buy orders and shorts panicking. Usually it will reverse on that day as well, and then the next day will be down. Like we saw today. Yesterday YHOO didn't close at it's high and it was down today.
I've played this a couple times with either SEEK, XCIT or LCOS. YHOO has always been too expensive. I missed out this time around- no margin. However, this summer the same thing occurred as well. XCIT ran to 110 and all of a sudden there were no buyers left and the stock closed at 98 that day. The next day it tried to rally, but it was all downhill from there.
It's brutally painful to watch, because if you're short, it seems like it's never going to end. You just have to make sure you don't short too early. Also, watch these issues prior to one of them splitting. They tend to run before a split date as well. I'm not sure what triggered it this last Monday. I've never gone short, only long for the ride up. Next time i'll probably sell my long and then go short if I play the game.
Good luck. |
