Paret's "Monster, Monster Short Squeeze Coming" comment is a Delight
Monday is a great news day, and even if the announcement takes another day or six, it is the start of week two of the three week timeline laid out by Davidson's spot on analyst... Shorts are lining up for their personal hurls under the bus for that resounding THUMP THUMP THUMP sound we have come to specialize in. LOL
Ignoring that one needs to be mentally handicapped to be short here without a hedge offset to the coming "mother of all short squeezes", it's not for everyone (thankfully or the stock would be hard to buy) but despite the uncertainties in D.C. over the next few days, we're happy to add down here, right at the top of the 4 weeks tight handle and now shaking off the nubs, likely right before the BIG buyback news hits the wire, and accompanied by a major buy program by Stiritz and others piling on, and roaring back over minor resistance below $73 and off to the pivot.
What a fun playbook.
Have you ever studied how hedging using option strategies decays with time? We think more than a few players in the mix here have an idea where those with meaningful short positions are exposed along that timeline. To mix metaphors, have you ever seen a high level pyrotechnician set up an extended fireworks show? See, the setup of wiring and cans takes hours and hours. They go off in what seems like only a few minutes, but everyone watching it happen is dazzled. LOL
We recently learned that our health insurance premiums for the staff will rise by 22% next year for the same coverages as now! Thanks Obama! We can afford it, but no wonder most small businesses aren't hiring anyone and insisting much of their staff become 29 hour per week "part timer employees" or "contractors." We hope all who voted for Obama to have a second term are happy. Obamacare is an unmitigated disaster for the economy and employment and the nation... He will go down as the most divisive President since Lincoln, and vie with Carter for the title of least effective of all time.
I added to my position today at $68.45. I know I have said previously I would buy in if it fell to $66, but at this point I want to make sure not to miss the bottom with a fresh week coming up heading into another earnings month, and with the audit news that could happen at any time. No reason to think we won't re-test $73 potentially as early as the end of next week
With the market looking to disadvantage unhedged retail players, it will be an interesting day.
DC nonsense aside, if Ramey is as dialed in as he has been since Billy began his tantrum spurt, this week should bring an 8k and or debt registration statement from HLF. When this happens, the stock will likely jump to at least $75.
Icahn is also going to be busy in the City today... meeting with Tim Cook ought to be good for a tweet and stop in to Bloomberg's studios to find a microphone.