3SOF

QuoteShort interest 37% of float.  Is this a concern?  (positive?)

One thing one needs to know about shorting is that sooner or later those shorts need to be covered. If we take the hypothetical and limit example of a stock that has 100% short interest, that stock can only go one way: up ! Nobody else can sell it, only buy.

When I was writing this article about FORD I thought if there were many technical players short of it, but forgot to check the information. You tell me there are many shorts, and that's a positive. Shorts will fuel any rally further and faster than it would if there was no short interest.

Thanks 

David:
I am in with you this morning on the price break.  Entered at 14.33.  Thankyou for the terrific analysis, as always.  The stock price support looks reasonable after one hour of trading and for certain the sell pressure has come to an end with this .70 cent downdraft.  At least for the time being.  The post by Twinpeaks is of interest of course, naked shorts working against any rallly may be the true cause for this sustained price decline.  Good news release or these current technical support levels are going to be important to turn shorts into short covering buy pressure.  Best of luck to both of us!

Looks DAVID is going to catch falling knife this time.

Yes, FIB number indicates $14.20 is 61.8% retracement. But I prefer to wait until candlestick gives a buying signal on daily chart before taking a position like I did on CHKP.

CHKP gave buying signal two days ago.

Will wait to see whether $14.00 is the strong support area.

Market hate uncertainty and that is why FORD crashed.

I prefer to bottom fishing stocks which has built a strong support base.

Examples are CHKP, TTWO, SGTL, ... I have all the three stocks and traded them often.

Thanks for pointing this one out - went down to support and back up like it should - good call

http://tinyurl.com/dm4rb

Te CEO Exercised 25k worht of options today at 3.25

3SOF

My previous post included this sentence.

"Good news release or these current technical support levels are going to be important to turn shorts into short covering buy pressure."

That good news apparently is not from the company but from another source of power........... the collective power of David Randolph calling a bottom.
Lets rock!!

Thanks David.

David is right on this stock.

I finally bought it at $15.45. Many big buyers put 10k's on the buy side.

Daily chart candlestick bullish signal is given and fib number also matches.

Also short squeezing for this stock. Expect to have a mini bull run.

Quote from: shawFund on December 15, 2005, 03:35:54 PM
David is right on this stock.
I finally bought it at $15.45. Many big buyers put 10k's on the buy side.
Daily chart candlestick bullish signal is given and fib number also matches.
Also short squeezing for this stock. Expect to have a mini bull run.

Hi shawFund,

What do you mean "mini bull run"? No more than $16.75...$17.00? 
I also bought today at $14.21.

Thanks David 

Wow      applaud

Unfortunately I've missed that one - I've been having problems with my connection lately. It's so frustrating............. 

I agree with you there is a very good potential on the upside but do you think tomorrow will be a good idea to enter or wait  for a pullback ?

Thanks

Yes, I also am wondering where the target price is because I got in at 16.30..

congratulations again!!
awesome picks but unfortunately no money left for new investings 

The last two candlesticks formed a Bullish Engulfing Pattern . This is a bullish reversal pattern that marks a potential change in trend. However, its reliability is not very high and it requires confirmation.

So when we get a gap up in the morning the required confirmation will be in place. 

$18.77 is the 200 dma
$19.67 is the 50  dma

   David,   Great call on this one!

I did not have the stones to play this one today.

Quote from: Jimbo on December 15, 2005, 04:22:19 PM
Wow      applaud

Unfortunately I've missed that one - I've been having problems with my connection lately. It's so frustrating............. 

I agree with you there is a very good potential on the upside but do you think tomorrow will be a good idea to enter or wait  for a pullback ?

Thanks

I think tomorrow still a good entry point Jimbo, the action today was only an appetizer
David, good jod for the FORD Due Diligence (applaud)

Thanks for your comments 

Oh God, what a technical trap this is setting up to be. I bet those 37% of outstanding shares short are held by nervous people at this point.

As someone said this is an engulfing candlestick pattern. We had a support at the $16.60-$16.75 area, now that's a resistance zone. The stock will open at that resistance level and may pullback some of yesterday's gains.

But it can also make a runaway gap from this resistance level.

Fundamentally speaking I believe the market has discounted the worst case scenario for the 4th quarter on FORD. Now seems to be the time to discount a more favorable outcome. I would say this would be done if the stock were to hit the descending trendline or close the gap on the chart below.

Longer term I believe FORD has the fundamental strength to go beyond its all-time high of $29.85, but I'm also curious about the 4th quarter.

I'll continue holding FORD.