Should you short ELON now? No, there are better shorts. Should you cover yours shorts? No, but ELON will move slowly under $10, maybe under $7.70. Should you sell your ELON stocks? After so many years... you can wait another 10 years and if you are really luck...
I said in the previous message above "sky is falling" and this is still true. The mess is sooo huge and leveraged... we can only hope this will not become a snowball and Ben is a mega genius! Therefore I still think someone should have shorts and longs.
Swiss, on a scale of 1 to 10, with 10 being the most confidence, how sure are you that Echelon will go below $10 in the next 6 months? Have you factored in the signing of a substantial contract in that time?
You haven't made any buy decision since 2001... and now you want to buy. This sound not soo good. You see, 2003-2005 were the best years to start a new position.
Based on that I will give you a piece of advise: 1) Pay back your debts and get rid of your CC 2) Have at least 2-3 months of your salary in cash 3) Check your insurances, do your have the right ones? 4) Invest in yourself 5) Give money to charites/poor on regular basis 6) Can you "invest" and save tax? Do it first 7) Go and see the world. You may be dead tomorow... (I would add "buy a house" to the list).
Now, if you still have money left... 8) you must know your edge. Do you know your edge? No? Go back to #4 9) You must concentrate on "avoid loss" & "diversify" 10) And the last and most important "BUY LOW AND SELL HIGH"
You will do much better for the next 10 years than most people on this message board if you dollar average your "investments", let's say every 3 months:
30% MSCI Global ETF (50% is USA) 30% Jim Rogers International Commodity Index 20-30% Swiss government bonds 20-10% Inflation-Adjusted Treasury Bonds
After 2010 we will see huge problems: peak (cheap) oil, hyper inflation, dollar collapse, baby boomers, much more war, climate changes, clash of civilizations/religions, etc. BUT don't missunderstand me! This means "change"... and you can make a lot of money during change periods...
NOW, back to your question: - Even if ELON makes money... ELON will go down. It was the case after 2000 and it will be the case again. - 1 substantial contract is not enough - Confidence? I will keep my shorts at least for the next 11 months. I don't care if ELON goes back to $22 or not. I WILL NOT COVER! I don't know any thing about short squeeze. - ELON's target for 2008 is: avoid a loss!