Post by babaoriley on Mar 10, 2015 13:40:59 GMT -5
Okay, this is difficult for me, but...
This is my guess as to what is happening around these parts lately. For the short interests to come out with this slew of negative articles, downgrades, etc., lately, and actually highlighting the early Rx numbers (which I believe to be almost meaningless), makes me think that the shorties feel as if the Rx's are going to show marked improvement and a much better trend in the not too distant future, and that, therefore, they need to attack now on the Rx front, because soon that opportunity will be gone.
Now, of course, once the Rx numbers pick up for us, the shorts will attack on other fronts, they aren't going away anytime soon (sorry, Spiro), but, again, perhaps they feel it's their last chance to use Rx numbers to their advantage.
In connection with the above theory, I'm looking for a healthy increase in short interest on the next report date (Thursday, I believe, for end of Feb), which increase will reflect shorts preparing for the onslaught that began early the first week of March. I also am very much hoping to see a marked decrease for the period ending March 15, as some covered and took some decent profits, but of course, we won't get those numbers until the end of this month. Also, don't forget that shorts can do more than just short stock to profit from a declining share price, they may also have bought puts or sold uncovered calls.
Glad to see the upturn today - hopeful that we will sustain it through the close!
This is my guess as to what is happening around these parts lately. For the short interests to come out with this slew of negative articles, downgrades, etc., lately, and actually highlighting the early Rx numbers (which I believe to be almost meaningless), makes me think that the shorties feel as if the Rx's are going to show marked improvement and a much better trend in the not too distant future, and that, therefore, they need to attack now on the Rx front, because soon that opportunity will be gone.
Now, of course, once the Rx numbers pick up for us, the shorts will attack on other fronts, they aren't going away anytime soon (sorry, Spiro), but, again, perhaps they feel it's their last chance to use Rx numbers to their advantage.
In connection with the above theory, I'm looking for a healthy increase in short interest on the next report date (Thursday, I believe, for end of Feb), which increase will reflect shorts preparing for the onslaught that began early the first week of March. I also am very much hoping to see a marked decrease for the period ending March 15, as some covered and took some decent profits, but of course, we won't get those numbers until the end of this month. Also, don't forget that shorts can do more than just short stock to profit from a declining share price, they may also have bought puts or sold uncovered calls.
Glad to see the upturn today - hopeful that we will sustain it through the close!
