Big powerful rally in this stock today behind more than 5 million shares. That seems to indicate some short covering. I think the squeeze is just getting under way. ...almost broke thru 21 on the upside.
You really think there i a strong short interest here, with all the other more likely candidates, I don't think you give shorts enough credit. I'm sure there some shorts that would try anything, but the majority feed on the likes of AHM just like circling vultures.
this stock may have trouble getting above 22 since that was it gap down price, but that is fine with me. it will pay this quarters dividend at least. wont be a whole lot of news coming out. all the news that has come out has been bad. some guy with a whole lotta cash is buying any sell order below $17. this stock should oscillate beween $18 nd $21. at least that is what i am hoping for.
The panic is certainly not over. The fed had to inject liquidity 3 times today to try to keep the CDO market moving and those loans had to be recalled 3 times as well. In the next week or so you are going to see some serious fireworks as :
1. There is NO FNM or FRE bail out 2. The FED CANNOT lower rates even 1 iota, and if they do so shortly after saying things were fine, then that would cause even more panic in the markets. 3. The CDO market is DOA, and housing collateral is worth 30% of the loan value.