Sellers Take Control

Thursday, September 04, 2008

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2 comments:

Mark Porter said...

does it seem like people selling positions / shorting / doesn't matter / no way to know?

Name: Brandon Rowley said...

Well, I don't know for sure but I heard a guy on CNBC saying short positions are not rising significantly. I know you can find short interest on stocks individually on Yahoo but I personally don't know for sure, just haven't done the research.

But, I will say it feels like the beginnings of panic. Look at the chart of RIMM. RIMM has had a great technical pattern and has been a leader in the market. RIMM has been rocked the past week falling 16% in 5 days. That is a crazy expansion in range and has engulfed weeks of upward work.

This doesn't seem like short interest. Shorts would be getting extremely greedy to continue to heavily short a stock on its 5th day down and it still fell 6% today alone.

Bear markets typically end when everything gets crushed and all sellers are exhausted. I think we're seeing the beginnings of the kind of capitulation bottom that would turn us around. But, it's still a few weeks off I think.

Anyways, lots of speculation here, take it for what it is, it's just my feel on the market currently.

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