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Strategies & Market Trends : Ride the Tiger with CD -- Ignore unavailable to you. Want to Upgrade?

To: riversides who wrote (119303)	6/19/2008 12:25:56 PM
From: tyc:>	Respond to of 313059

If the short is part of a hedge strategy a squeeze presents no problem.... for the hedge is constantly rebalanced as a normal routine. The hedger is simply expressing a preference for one sector over another...... e.g. a preference for seniors with significant cash flow over speculative juniors with no earnings nor any prospect of earnings short term. Institutions are not making heroic gambles on their assessment of relative strength of individual speculative stocks. They prefer steady profits from their hedging. (But it's all a mysterious garden... I just guessing as you are).