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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: GraceZ who wrote (5239)	8/13/2002 10:19:47 AM
From: dvdw©	Respond to of 24758

Grace this post says it all IMO. As one who watches the market through Supply imbalances, this condition is the Primary signal. Shorts somehow believe that they are safe by piling on even higher short interest at these low levels looking for shares to be forced out. Trouble is, the surviving longs are not going to give back shares to make it easy. At some point the MM's will say enough, and start raising the cost of covering. Longs still wont give up supply and you'll have the beginning of a new trend. In my universe where 15 million share floats are the average, Shorts have a real and growing problem. Scarcity has intrinsic forward value. Just as many Shorts buy Gold as an alternative to dollars or other currency, they are banking on the relative scarcity of the commodity against a backdrop of a growing pool of dollars. Scarcity as it relates to forward earnings is more valuable than commodity gold. The set up is near complete.