Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Shorting stocks: Mechanical aspects -- Ignore unavailable to you. Want to Upgrade?

To: Q. who wrote (41)	11/10/1997 8:44:00 PM
From: Ted Jackson	Read Replies (1) \| Respond to of 172

I would tend to agree. Remember IMPX? I was long on the stock and managed to get out right within 3/8 of the top. I was still inexperienced at the time (mostly luck that I got 8 points out of it). Anyway, it was also my first call purchase within 1.5 of the top. Needless to say, I lost my ass as it tumbled from 21 or so all the way down. There was a great deal of short interest at the time. I guess the interesting thing is that it was still a good short at 4 because now it's around 1.5 I think. Thanks for the reply, however my question still remains...is short interest a good technical indicator, and if so, in what way should it be interpreted? If it isn't, then what's the use of knowing it except for curiosity's sake?

To: Q. who wrote (41)	7/22/1998 11:28:00 AM
From: T. Pascal	Respond to of 172

>>That's the key issue, I think. Understanding the fundamentals, and putting a value for the stock on those fundamentals, rather than just relying on technical indicators like how much the stock has fallen.<< I'd agree with you if you were talking about long positions. But for short positions (unless it's clear the company will go bankrupt which is rare), I would say to set your percentage and get out. Set your target price ("I'm going for 65%!" or "I'm going for 85%"), and when you hit it, vamooooooose the hell out of there. On the other hand, I would only short a company based on fundamentals, not on technical data. You're right about that. But for my cover decision, I use a target and that's it. Shorts are for short periods of time, and they can never fully double your money, so don't stick with it. Stocks have a nasty tendency to rise over time, so hit your percentage and skedaddle.