Brian Shannon (Alphatrends.net) gives his take on the GMCR short squeeze during his Monday evening TA video 4/13/09 here:
(Go to about 61 minutes). He's sounding pretty surprised at how large the short position still is. As most of us are too, I suspect!
"I'm finally starting to learn not to freak out when there's a pullback like there is right now."
Brain I was starting to freak out trhat trhe stock has gone straight up.
A pullback is the healthiest thing for a move of this nature.
Do not at all be concerned if it retraces further.
Part of proper estate planning is to diversify your assets.
As the share price has climbed dramatically I would assume that share of some executives portfolios has grown disproportionally.
This happens with every company.
This is a non event.
there is a slew of insider sells and a P/E of 40.6,...
no one is faulting the BOD to sell at these high levels. but one has to ask,..if there is that much confidence in continued growth wouldn't the key executives stay their position and/or add to their positions ? it's difficult to pass up profit,... but why sell when it could move up +5, +10 or more ?
time will tell,...
I don't think it's about the economy here as much as it is about *fear*. When longs fear losing their profit more than shorts fear their losses becoming larger, the price goes down. I think a bunch of people bought into the short squeeze, and now some of them are *afraid* that it's about to end.
I personally do not think it's over, so I'm not worried. I'm also a long-term believer in the company, and I'm not worried about *that*, either.
Maybe when I'm really convinced the squeeze is over, I'll take a bit off the table.
whether it's a pullback or a Fib retracement or other,... it's all about the economy.
coffee is a luxury in the sense that it is a not needed product,..it's a want. as the economy begins to further collapse so will the merchandise and products that the buyer/customer can cut out because of budget constraints,... multiply that by the -X- factor and you've got a potentially stumbling market for certain and particular merchandise.
follow the trend,...and when it reverses follow that.
i don't care what side of the trade i am on,..i just want to be on the right (profit) side of it.
"You'd have to be crazy to short this...",...
i'm sure they said this about SBUX and AIG and C and GOOG and a host of others.
take a look at the insider selling and you will get a better perspective. GMCR is very overpriced at now trading at approximately 40.6 p/e relative to earnings,...
i'll be buying puts,...
Beginning to agree with you. These are the type of people (momentum chasers) who are buying this stock up nearly every day. Hot money never stays around for a long time. Once they start to exit, watch out. A spike in volume to 1.5m+ shares in a day will be your key to get out of this stock before it suffers a severe correction.