Online Stock Trading | Shorts Take Cover

Shorts Take Cover


Filed Under Market Commentary |

6:45amEST  Gap Down Offers Short Sellers an Opportunity to Take Profits

At the open stocks fell as expected, selling began heavy as a bit of panic did set in.  The VIX index jumped to 37.45 before pulling back.  However, short sellers, professional short sellers took their profits as the rally off the lows began.  The winners of the day was Small Cap stocks.  It should come to no surprise as these stocks have been taken down hard.

News out of AAPL was not well received, its earnings disappointed the street.  Once the leader of this market will have an impact on trader’s psyche.  On the flip side, ASIA rebounded nicely as the Hang Seng rose more than 10.7% and the Nikkei more than 2%.  Remember, they had tremendous losses from the prior two trading sessions.  I wouldn’t view this more than a relief rally.

At the moment, US Futures are pointed for a lower open.  Europe is pretty much in the red across the board.  This is not the time to become a hero in this market but a time to be in cash and waiting for the next opportunity to get long.

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Comments

2 Responses to “Shorts Take Cover”

  1. Gio on January 24th, 2008 4:21 pm

    Hey MSpec…

    How you doing? You cash or you short? I think Josh is starting to get short aggressive.

    -gio

  2. Market Speculator on January 24th, 2008 4:33 pm

    Gio!

    Doing just fine how about yourself? Haven’t seen you around.

    Yes Maui has gotten short, I am mostly in cash with a littlt TWM and SDD.

    Good to see you around!

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