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Wednesday, January 28, 2009

Massive Historical Short Squeeze Is Coming

A lot of people have been doing well shorting stocks. They are about to get hurt badly.
They are expecting a trading range and will probably short agressively when the market gets up around 9000 again.
But this will not hold. The market is headed up at least to 10,000 and quite likely more.
These short sellers will be geting margin calls and they will be forced to cover. When they all try to cover at once the markets will be in a buying panic of historical proportions. Many shorts will be bankrupted.
HOLD ON TO YOUR HATS

1 comment:

bix1951 said...

well...I guess I had that one...at that time...10,000 nothing! the market has gotten almost to 18,000! But what will the future hold? Another double from here? A correction? A bear market? I am confident that in the long run...ten years or more...the markets will continue to behave well giving healthy returns to patient investors. I look back and remember DOW 1000...so to get to 18,000 there have been there have been 4 doublings...in my memory!