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Re: Traderfan post# 5226

Tuesday, 10/12/2010 11:00:11 AM

Tuesday, October 12, 2010 11:00:11 AM

Post# of 34471
I think that the most logical explanation for the short interest at this point in time is that a lot of fund managers are looking at the recent market rally and don't believe that the economic indicators paint a picture of a sustainable run. They are shorting everything that they can get their hands on, and focusing most heavily on the emerging markets which arguably stand to have the most price movement if the market were to tank.

I'm definitely not a perma-bull, but I do believe that the November elections and QE are going to keep the rally going or at least sustain the current levels for the short term. Either way, I think it is likely that CCME will continue to move upward irrespective of which direction the market moves unless there is a total collapse. The window is closing on the shorts and I think they are going to find themselves on the wrong side of history.

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