Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: stevenallen who wrote (3255)	7/2/2001 8:54:45 PM
From: Michail Shadkin	Read Replies (2) \| Respond to of 6873

Stevenallen - availability of short shares Lets take a pos stock that has a significant short interest. Now the stock goes on a mini run for 1-2 days. Lets assume we try to short at several brokers and no shares are available. (btw this does not mean the stock is going higher or lower) Often, this means the stock has not moved enough to shake out the weak shorts yet. Also, new shorts have joined the party now. From here the stock might retreat or it could head high and get to a point of maximum pain for many weak shorts. When these shorts cover their positions, shares become available all of a sudden. (Also new purchases create new shares to short at your particular broker) To me this has been a great indicator of a soon to be immediate top in the stock. When pos stocks run big, first its the day traders, investors and finally the shorts covering that push the stock higher. When shares become available after not being available for a long time after a big run, it is the top or very close to it. Perfect examples were TIVO and WEBX when they went on giant runs. How do I use this in trading: If I know shares are not available to short at several brokers of a stock on a run, I keep checking through out the day as the stock is rising. When shares do become available, I am more confident of a top and therefore usually will take a larger up front position. Michail