what I would call, 'rationalizations' regarding pullbacks.
Some call them healthy, some necessary to go higher, some simple accept them as normal.
I guess the 'normal' answer is the truth, but it's also normal for a baby to defecate without control and we teach them to use a toilet.
All this 'healthy' and 'necessary' talk is code for "letting stronger hands in because you aren't wanted and your decision to buy doesn't matter". I agree, but only to a small extent with regard to traders. They only add volatility.
What this is really all about is YOU made a good decision and the big boys didn't. Since they have more money and access to shares, they can run you out, make money doing it, and then make money on the way up... while you go broke.
Not only that, but when you short, you get money deposited into your account so you can put it to work elsewhere. When you go long, you deplete money and there is a limit on how much you have. Heck, theoretically you can be broke and short to fill your account with money. You just then have to pay the interest and not let the stock up until you cover.
What is healthy and necessary about that? That's institutionalized and legal corruption.
The freaky part is, that Jim Cramer and I agree on this. Only thing we do agree on. He wrote a rather nice article on the evils of shorting years ago, when they first starting changing the rules. His simple thesis is that capital markets do not exist to destroy wealth, but to create it. No company is in business to go out of business, and shorting can destroy them regardless of their good intentions or strong business model.
Okay, that was my rant for today. In truth, it is what it is, and I always found that success is based on understanding the system and working within it. You don't bet your philosophy, you bet your money. Sill, it #$%$ me off that these things are allowed.
All I see on the chart to the right is a Twin-Peaked "Mountain" sure is purdy but not a fountain.
On the otha hand it looks like a volcano, now wouldn't that be nice couldn't budge it with draino.
Mikey, you truly are a terrific writer and have expressed our sentiments eloquently. These truths are actually recent revelations to me and I am flabbergasted that the greatest nation this earth has ever seen, has such corrupt markets where dapper thieves are permitted to steal and undermine our economic system.
Sentiment: Strong Buy
I am incredulous that offshore/ foreign shorters don't have to obey even our lax securities law.#$%$
I might be the only conservative protesting in zucati park.....I need a break from bathing and shaving anyhouz.
See Below as I can't respond to my own thread!
So add up the number of shares O/S and it comes to 0ver 99 million.
Questor shows the float as 50.31 Mil and Yahoo shows the float as 48.39 Mil.
It will do absolutely No good but I'm going to ask some questions Monday morning. Just blowin off steam here. Mikey got me riled up.
So Michael: do you attribute yesterday’s spectacular 7.5% drop to reaction to the Lafferty and JEF publications (followed by Nervous Nellie stop-triggering, followed by frustrated-trader towel-throwing-in, etc.)?
I am no student of Level 2, or TA (thank God), but you seem to be hinting at something darker, ie. some kind of string-pulling by Higher Forces..
I am loath to believe in the latter (naïve?), yet yesterday’s action really seemed to be a reaction to Wednesday’s equally spectacular morning rise! It was as if the specter of a real explosion + short-squeeze appeared – and had to be swatted down and FAST.
I know there is this terrible human tendency to try to give flesh (a story) to the inexplicable results of myriad, random, tiny influences on statistics – any comment, anyone?
I have “worried” openly here before about the continuing potential impact of short stories, and yesterday had that same merde-stink. The continuing undervaluation of this stock is not merely trying to me, but rather incomprehensible.
Thanks for your post, I (y) it.
Lafferty and Jefferies were nothing more than after the fact rationales. Besides, Lafferty's research was laughable. Jefferies was another matter. Jefferies inadvertently gave a sell signal by all of a sudden not including some paragraphs they have been regularly updating. It's like the analyst was too focused on crimping expectations a little to support his target price, and left out the great things that happened that would support his target. Let's just call Jefferies piece a bit of bad writing and a lack of thought, and leave it at that. Lafferty... again, laughable.
The short attack Friday was written on the wall the entire last week. The PPS increase to sell calls, the careful nature in that it rose, the final day being a good up day to lure in a few last chasers, etc.
The only thing that happened that could not be predicted from the data, is that last little intraday jump into the mid $36 range. My tweet may have caused that, but it was doomed to be short lived. The plan was already in place.
The stock is trading too tidy and predictable with very few anomalies.
I'm not the brightest bulb in the lamp but if you go to Questor website and look at the stock information you will see the following as of 12-31-12
Holders Values ($) % O/S Shares
Institution 289 2,197,870,941.00 115.15 67,419,354
Mutual Fund 435 1,042,509,557.00 54.62 31,978,821
That is 169.77% of the OS shares held by MF and Insts.
Now we all know there is NO such thing as more than 100% of anything.
Figure this out and let me know...You can't make this stuff up!