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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: W. Clinton Terry who wrote (12321)12/26/1997 4:56:00 PM
From: Jack Clarke  Respond to of 94695
 
Clinton:

I will again throw in my two cents' worth on your question to Bill The logic behind hi short interest being bullish is twofold, as I understand it. First, it's contrarian. The mass of speculators is "invariably wrong", as Fosback says (Market Logic). Also when the speculators realize they are wrong, as the stocks they are short rise in price and they get their margin calls, they have to fork out money to buy the stocks back "in", or "cover" their short positions. This also drives the prices up.

Jack



To: W. Clinton Terry who wrote (12321)12/26/1997 8:03:00 PM
From: William H Huebl  Read Replies (1) | Respond to of 94695
 
Clinton,

Sometimes in the upside down world of trading, up is down and down is up. In THIS case, oddlot short sellers are notorious in being WRONG... so if they are shorting more (oddlot value goes up) then that is BULLISH. And vice versa.

For Bernie Schaeffer... he is in here somewhere:

options-iri.com

Bill


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