One problem with playing the short side is that shorts get greedy as much as people do on the long side…the difference is ;with a short position …the losses are unlimited….A stock may go up and up for years….A category of stock that has been pounded down and has showed good price movement in last two days is the homebuilders[ TOL HOV LEN etc.]These can run and run when the short squeeze starts since the proportion of the available float that has been shorted is so large.One would think a good time to have covered would be after the Obama news conference regarding the new loan programs….BUT….. did they?….KB homes is up 20% at this time [3 pm].It would be just too bad for a short if they went home early for Turkey day And someone started a buy program right now into the close!!.Friday could be very profitable for longs and a bad hangover for the shorts…

Tags: homebuilding stocks short squeeze developing?

This entry was posted on Wednesday, November 26th, 2008 at 8:03 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.