This is concerning:
Short interest has jumped considerably in the last few weeks to 4 million shares. Is somebody betting big against Active Power? Is this what happens when a stock makes it onto the Russell indicies?
Dell is at the top of the list.
I suppose it could just be that someone else has a different opinion on the future of acpw.
I just see these guys ramping up the same way they did last summer. Unless they decided to "sell at a loss and make it up in volume", I think things are going well.
The big players have people spooked. A few weeks back, we had volume of about 15 million when ACPW joined the Russell. I guess 4 million of the 15 were short. That's only about $10 million...chump change on Wall St. But still, why would anyone take such a risk on a small stock? I hope the SEC is watching.
I thought it was interesting too that QQQ has the 2nd biggest change. QQQ is "an unit investment trust designed to correspond generally to the performance, before fees and expenses, of the Nasdaq-100 index. The fund holds all the stocks in the Nasdaq-100 index, which consists of the largest non-financial securities listed on the Nasdaq Stock Market."
So, there is increasing short interest on the broader market as well. I guess that just happens when we move up 500+ points on the Dow in one week.
Concerning ACPW, a long term investor sees a dip in share price as another opportunity to buy.
Just saw an interesting quote in an article about China's economy and the world economy in general.
It makes me wonder if institutions all over the place are hedging in many different ways. Hedging against a falling S&P, hedging against a collapse in the Euro, hedging against rising commodity prices, hedging against a fall in a very large position in Active Power, etc. etc.
Still 4 million shares being short is a non-trivial amount for Active Power. When would it make sense for an institution holding a few million Active Power shares to take a short position? Or is it strictly hedge funds that are betting against Active Power's current valuation? I'd appreciate the thoughts of those more experienced in this arena.
"John Canally, investment strategist at LPL Financial in Boston, said the Chinese data was a "Goldilocks scenario where it's slowing but not slowing enough to cause a crash."
But he said sovereign debt issues in Europe and the debate over the U.S. budget were wild cards for markets.
"We are positioned defensively but not bearishly," he said. "We have more cash than we would have otherwise. We have hedges on against the S&P's declining. We have a short euro bet on."
p.s. re: china..peasants are moving in great numbers to the city, and the base of potential customer population
is growing rapidly.
Even if growth of consumption is slower than before, it is still there...indeed.
Having a hedge on against S&P declining..could means they are selling calls, instead of puts...
or have bought puts on the index.
Tthat doesn't harm stocks, like outright shorting does...selling shares of our stash of stock against our position...is what
really can harm an advance that is warranted.
I've told my broker they'd better not lend one share of any of my 3 doz stocks to any short whatsoever...he has promised they would not.
Everyone should demand this from their brokerage co. if possible to do..some may not want to..because they make money lending YOUR shares to shorts.
sick system, really...convoluted and created by
i think I would like a rule that reveals short positions by seller.and by #of shs.
that extra info could help us figure who and maybe why.
but, where could it be posted!and who would monitor compliance?
Tthat rule is being considered by SEC now...or was a few weeks ago, and I think it still is on their site forf comments.
It would reveal exactly who is shorting any stock...and the mm's and hdg. fnds fighting it...but if you and all the others who care about this scam trading, manipulatiion, would go there and comment...we could win this one, like we did gthe naked shorting rule we fought so hard for for over ten years.
they didn't want that one passed either...and MM's can still naked short...but we'll go after that issue as soon as we get this one, identifying shorts passed...
Pls. go and comment...on sec.gov...
re: exposing shorts rule.