Replies to post #80246 on Mohacsy's Safe Portfolio Member Forum

[Elroy Jetson]

I think the best thing to do would be to hold a funeral for the shorts.

The high short percentage is the only thing which has TSLA trading where it is. Official there's $16 billion short — but I'm sure some market makers are also short in additional large amounts which is not included in that total

This is what caused the collapse of Knight Securities during the "internet bubble". When "over-priced share soared, the market market Knight sold into the buying frenzy to calm the speculation, but could not later cover this short position because the price never cam back in . . . until after Knight's bankruptcy.

All it took was the tiniest bit of news that Knight was in a bind and every large investor bought into shares of worthless firms like "internet incubator" CMGI and made a mint as the shares soared at Knight's expense.

Today CMGI has a second life traded as STCN, a supply chain management company called Steel Connect worth $1.48 per share, a minuscule fraction of it's former peak share price of $1,286 a share, and it's still losing money !

[Elroy Jetson]

The worthless companies already valued at more than one trillion Dollars are

Saudi Aramco

Apple

Microsoft

Petro China

Alphabet (Google)

[dexprs]

Court, first reaction is to get scared. Then I dig into it deeper, but I am not likely to buy anything without earnings. It can also mean the first warning sign that the market is getting very foamy.