i think a lot of gunslinger hedge funds got caught short because tuesdays selloff by all rights should have been perfect short setup. here is what one said today.
Cody Willard
Holy mackerel
10/03/03 12:41 PM ET
Can you imagine the hedge fund managers who are down on the year, who piled in the shorts on Monday and Tuesday, got berated by their partners on Wednesday for being down YTD, told their partners not to worry because this really was the "Big One" and they were pressing all their shorts, and now have started off the fourth quarter already down another 3 or 4%?
That, my friends, is what we're seeing in action right now. I'd guess that out of all those shorts maybe 10% of them are covering 10% of their shorts today. And this dynamic -- this buying begets more buying dynamic -- is why Mr. Streak's theory that all shorts must be taken out back and shot before this bull phase is over is looking like it really could play out. What happens if the market doesn't crack by late November. December could be absolutely monstrous to the upside.
I know I'm feeling the pain for having added to my QQQ net short the other day. And I know that the remaining small short I have left on the sheets are painful too. But I'll tell you that that the big shorts whom I speak with are literally dying here. Dying a slow and painful death.
Wonder if Al Michael's is still short.
net short QQQ
Cody Willard
Holy mackerel
10/03/03 12:41 PM ET
Can you imagine the hedge fund managers who are down on the year, who piled in the shorts on Monday and Tuesday, got berated by their partners on Wednesday for being down YTD, told their partners not to worry because this really was the "Big One" and they were pressing all their shorts, and now have started off the fourth quarter already down another 3 or 4%?
That, my friends, is what we're seeing in action right now. I'd guess that out of all those shorts maybe 10% of them are covering 10% of their shorts today. And this dynamic -- this buying begets more buying dynamic -- is why Mr. Streak's theory that all shorts must be taken out back and shot before this bull phase is over is looking like it really could play out. What happens if the market doesn't crack by late November. December could be absolutely monstrous to the upside.
I know I'm feeling the pain for having added to my QQQ net short the other day. And I know that the remaining small short I have left on the sheets are painful too. But I'll tell you that that the big shorts whom I speak with are literally dying here. Dying a slow and painful death.
Wonder if Al Michael's is still short.
net short QQQ
