I expect a significant break-out on the other side of this action. Strange stuff going on in short land, but, it continues to be an expensive game. Never let your ego or your pride get in the way of smart investing.
Today's action is confirming your take on NRF. This is what I have been waiting for, a market down day and NRF bucking the trend. This could be our inflection point. I want the market to put a nice gap up between my cost and current market value. That validates my buy decision and shows the market believes the dividend is secure and growing.
I tried to post yesterday --- and it doesn't look like the post updated into Yahoo's servers --- that we could expect another big dump of NRF and the market between Wednesday and Friday --- when it became obvious that the Dems and Republicans weren't going to compromise. I expected that it would be one last stop "stop-busting" dump of several million shares and that the shorts would start to cover after that.
The market's big dump has come, but so far NRF is not much affected. The "big stop-busing dump" may be lurking today or tomorrow, or the shorts could be out of ammo.
I haven't shorted any of the indexed EFTs like I normally would because the situation is too cloudy. The R's and D's have seemingly dug in their heels. But they ARE politicians, and politicans hate chaos. In the unlikely event that a compromise does pop up out of the blue, which would probably happen over a weekend, the market will soar a couple hundred ponts.
So better to hang in with long positions and buy more on dips that to go short as a hedge against falling longs.