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So you think the 54 million shorts won't start to cover if GME beats the $1.72 Q4 Estimate?If Gamestop is struggling, why would it not show up in Q4?
I'd litteraly have to pull excerpts out of Jeremy Steven's book on behavior science of investing.But, you ha e to realize that longs and shorts have game plans set in place based on a wide array of factors. Jim Cramer explains it pretty well.A short can laugh at a long for holding while shares plummet just as longs can laugh at shorts while shares jump.To clear up the confusion. You need to idea.tidy Catalysts that the shorts are sitting on and catalysts the longs sit on. Those long term catalysts are far more important than earnings reports.Its all about future prospects of the company. You analyze the chart patterns to determine whose catalyst is the strongest motivator for future pricing action.You do not sit on your catalyst believing you are right and the Shorts are wrong with due diligence of sales trends and explanations for sales slips.Certain reasons for an earnings miss or beat are better than others. Gamestop announces an earnings beat due to one time items, then that is a BAD thing.So, bottom line is what is the real trend in sales for 2012? Will every month look as bad as January and Feb? OR is there catalysts to believe the future sales will improve in the sector.And what about the Macro? Some see growth and leading indicators slowing while gas prices are high.Lots of factors are analyzed by Big Hedge Fund Shorts and so an earnings release tells not even half of the story.Which is why.you must master your emotions.