LoginSignup
image de profil
Sparfuchs@Reinecke
9Mo
First of all, the share has to have a really high short ratio. $PBB was a good example of this at 17%. Now you have to buy really well just before the shorts expire so that the shorties can no longer get in - and then the Luzi takes off.
•
1
•
image de profil
Rmann@Epi
9Mo
@Reinecke $SMR was about 27% short interest at the end of Feb and time to cover 6 days!
••
image de profil
Sparfuchs@Reinecke
9Mo
@Epi But then the movement may already come, because the shorties are now buying back.
••
image de profil
Rmann@Epi
9Mo
@Reinecke Yes, I think the movement is coming from the coverings. The last news was ridiculously insignificant.
The only question is when the run will be over and how to recognize it beforehand?
••
image de profil
Sparfuchs@Reinecke
9Mo
@Epi then you have to keep an eye on the short rate.
•
1
•
image de profil
Rmann@Epi
9Mo
@Reinecke Okay, getting current data is not trivial.
And when I have it, what do I do with it in your opinion?
So selling makes sense if the short free flow ratio falls from 27% to 20%? Or 15%? Or what does the theory say?
••
image de profil
Sparfuchs@Reinecke
9Mo
@Epi You can't do that mathematically unless you can process greed in a variable. I always follow my grandmother's example, cash in when it suits you and never look back.
•
1
•
image de profil
Rmann@Epi
9Mo
@Reinecke If I do what your grandma does, why do I need to keep an eye on the short rate?
••
image de profil
Sparfuchs@Reinecke
9Mo
@Epi because you can recognize when the cashing out starts.
••
image de profil
Rmann@Epi
9Mo
@Reinecke Good in this generality. But I can't mathematically determine the point according to your statement. How do I recognize in the short data that the cashing out has started?

I would really like to know. The price increase is almost frightening.
••