Quote from Illum:
If this were about to be to over, how to trade in front of it?
Short covering rallies? Or will participants just take loses? How do you "fix" this situation.
I've been talking to PM's. What stocks are the hedge funds looking for ? Then, I scan for volume, especially low priced stocks. But with ex clearing, they are into everything. Look for stocks heavily shorted,and the setups that come with them.
I heard that the buy ins are being met w/fails, so you still have some time. But today, for the third time, I heard about this mystical '2000 point rally'. These are Street guys, big guys. And there is only one way that can happen - technicals. Buy ins.
On the particulars, look at Palm. You think that phone was that good? IDCC was a big SAC short at one time. It's pretty isolated now. So you have to be diligent. But, if you see pigs flying, you'll know why.
Maybe scan low priced bios. They are primed for manipulation. Always needed money, you know. So, they'd be shorted into the face of raises, and they really don't cover.
Hope that helps.
I'll give you a name, I have no position, I'm just waiting. DCTH. Stock has doubled, and guys are looking for stock to borrow. You just have to wait. I am afraid, though, they all come at once. I was hoping I could pick the bastards off one at a time.
And also, think about this. At one time, we worried about DC not being willing to put the brokers and hedgefunds under. They can't survive a massive call in. However, it appears the worm has turned. VW/Porsche show the wilingness of governments to kill hedgefunds. Here, a lot of folks have already been destroyed, or have gotten out. All that really is left is a shell. So, if you kill the funds, who is going to cry, when the market goes up. I think even the Dems know it's good for the Dow to rally. News flow is softer, News Anchors cheer up.
Now, a couple years ago, Vodiagroup hypothesized that a cover would make the market go up 10%: that 's how deep this is. If that were to happen, you make pension funds (those not exposed to hedgefunds) healthy. So you wipe out some Wall Streeters and hedge funds. That, all of the sudden, is politically popular, isn't it? Like the snake in the road - the skid marks come after, then the car backs up, and runs over it again.
If you look at joe Bruno today, via the NYPost, he was bribed, it is alleged, to lead Union Pensions to Wright Investors'. Amazing! Now, you know Madoff was in a couple of Unions. And you now how the sell side works - you bribe an insider or two to lead you to the promised land. A CNBC guy said "dozens' for madoff's Union victims, and that's not out yet. So, you can see the damage yet to be reported, and there will be no mercy when it comes.
Another point is, O'Bama has 6 months. Maybe three. In whatever period of time he has, the next day this is his problem. So, I think, the politician he is, he blows it up now. "look, I fixed what George Bush screwed up." I sure would.
