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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: lh56 who wrote (10194)	12/3/2001 8:08:44 PM
From: t2	Read Replies (1) \| Respond to of 99280

sometimes a cigar is just a cigar. True. Short interest had gone up for months and months while the market was heading down. Right now, I am just playing the possibility that the level of short interest is getting high enough to prevent a selloff on the Nasdaq. Who knows, it could double before reversing directions but the higher it goes, the better the odds in favor of short covering. In a way, rising short interest on the Nasdaq reminds me a bit of the way the Nasdaq kept going higher and higher --- then poof! The bubble bursts. If by chance there is a significant rebound, there could be a major short covering rally. Even if a big recovery is unlikely, the small possibility has to be factored into trading/investing decisions. Just one of many things to consider in playing a short term trend (maybe not the most important but still a factor).