Help! I'm short!

E

einai

This is a genuine question to you more experienced traders.

Today was a normal trading day in Canada. So I went down to my local TD branch and deposited some cash to short the hell out of SLF (a mid-size Can insurance company).

It was only down 2% of Friday's close.

My question: Presumably at the open I could make a quick couple of percent on this. Should I close out early, or stay in for the long haul, i.e. 1 day or 2?

Any comments will be appreciated,

David H.

PS Check out my short tip ATV from earlier this month!
 
Depends how much action you have on the trade. I usually take my profits when my 1-2% target is hit. Then kick myself later when she is down 5-7%+ cause I DIDN'T get greedy. Obviously, better then getting burned...
 
Cover at the open. The stock should open at the low of the day in order to get all of the selling out of the way. The bid-ask opening range for the stock will probably be "wide". Those who absorb the expected selling onslaught will bid the market up higher in order to fill the gap that'll be produced on the charts and institutional investors will buy later in the morning after witnessing the early rally.....I hope so for your sake. We'll see.
 
Thanks to you all, I really appreciate your comments.

I didn't quite understand the stuff quoted at the bottom. Am I wrong in thinking that you suppose a rally?

The more I look at your remarks and think about it, the more obvious it is that the question hinges on just how low tomorrow's open is, which in turn hinges on Europe.

David H.

"Cover at the open. The stock should open at the low of the day in order to get all of the selling out of the way. The bid-ask opening range for the stock will probably be "wide". Those who absorb the expected selling onslaught will bid the market up higher in order to fill the gap that'll be produced on the charts and institutional investors will buy later in the morning after witnessing the early rally.....I hope so for your sake. We'll see."
 
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