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Strategies & Market Trends : Classic TA Workplace -- Ignore unavailable to you. Want to Upgrade?

To: Shack who wrote (69973)	3/29/2003 8:18:12 PM
From: mishedlo	Read Replies (2) \| Respond to of 209892

Shack when they break they die hard REGARDLESS of short interest. GNSS went to $90 or whatever with 50% short interest. It stayed 50% short on the way down. What happens is that small shorts get squeezed out and big shorts take over at the top. I can not tell you WHEN that will happen but I bet it does and I bet AMZN short interest does not drop on the way down. What you will see is everyone afraid to short it AND attempt to buy it all the way down. Here is my theory on how it happens. Someone or someones (hedge funds?) shorts massive numbers of shares. As a 100% perfect hedge they go long the same number of shares. They keep adding to this position indefinately AT NO COST AND NO RISK. There are fewer and fewer shares available and people keep piling in on the "good chart". Janus and all the MUFUS keep buying more and more and more of total garbage while some hedge fund accumulates a huge short position AT NO COST. Finally at some critical juncture the massive amount of longs is unleashed into a plunging market. The MUFUS that have this crap see the plunge and want out as well. The PLUNGE is earth shaking. MUFU support is reduced. The hedge fund covers the short and sits back and watches. They are still heavily short (with a huge profit now) but also long the same # of shares on the cover. Idiots come in and push it back up to a double top or lower top this time without as much instituitional support and the plunge the second time is bigger. All the way down the short interest stays high. Finally at the bottom the the short is covered, new shorts get in too late and back up we go with the hedge fund long. That is what I think happens. Where are we now on AMZN and EBAY. If they break HARD and then double top. Short and hold on regardless of short interest. As for RIMM WTFKs? Thousght on this scenario? M