Posted by: eminitrader March 29, 2007
Making Money with Eminitrader
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I was expecting a break today but the market managed to close slightly in the green. One of the things that caught my attention was that the short ratio has been the highest in few years. For those of you that do not know about short selling, it is basically selling stocks that you do not own. You borrow it from brokers and sell it. The benefit of it is that you'll make money if the market goes down and you'll lose money if the market goes up. It is very risky and is NOT a good idea for a regular person tho short. Leave that to the professionals. So with such a high short ratio if this market can hold at this level, we could go higher. Heavy short interests are usually happen towards the bottom, not near a top. So after my analysis, I am neutral at this point. Here are some of my picks. XLNX, MPWR, ALTR. These stocks had a decent increase in short interest. Like I have said before, if a stock falls 10% from your buy point, take the loss. I'm excited that there is more participation now.
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