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Politics : Stockman Scott's Political Debate Porch -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (9667)	11/21/2002 6:39:24 PM
From: stockman_scott	Read Replies (1) \| Respond to of 89467

Part of the rally is a long / short fight among hedge funds, with most of the newer and smaller funds on the short side. ************* Look Out Short Hedgies, Here Come the Longs By James J. Cramer 11/14/2002 02:01 PM EST Click here for more stories by James J. Cramer Note: The following contains incendiary language for those who might be short this market! So the big hedgies want to break it out to the upside, my colleague on RealMoney Pro, Doug Kass, reports. I believe it. There are a couple of hedge funds out there that can press a future like there is no tomorrow, and given the short disposition of so many hedges out there -- short the SPX, short the Spiders (SPX:Amex - news - commentary - research - analysis), short the QQQs (QQQ:Amex - news - commentary - research - analysis), short the Semiconductor HOLDRs (SMH:Amex - news - commentary - research - analysis) and the Morgan Stanley Hi Tech 35s and whatever else walks or crawls -- it's a gutsy and probably correct move. The overwhelming creation of a series of indices that allows you to make short bets coupled with the ease with which you can make them (no borrow worries, no uptick worries) has made shorting the national pastime, attracting every Tom, Dick and Harry hedge fund. Now with the SPX at important breakout levels so glaringly in their faces, they all will have to come in and cover -- as if they really knew why they were short to begin with, those darned traders -- causing a blip up that the big hedge funds triggering the madness to the upside can blow out of. Do these kinds of trades have anything to do with anything? Yes indeedy: They have to do with momentum and psychology and the inability of the market to allow shorts out of their positions without catastrophic losses. Sure, the press will hang it all on a stronger-than-expected retail sales number or an Intel (INTC:Nasdaq - news - commentary - research - analysis) buyback, but what it should really be hung on is performance anxiety and the inability of the newbie managers to take any pain. Try putting that in a headline, though!