Replies to post #104707 on Zeev's Turnips Patch-No Politics (ZEEV)

[plexxus]

>>>but isn't this pretty naive? i mean, the higher the market is pushed, the more shorts are going to pile on, because things just get more and more wildly overvalued.>>>

Ok answer me this....we went from 5100 to our current reading of 1500 yet the short interest on the comp is at/near record highs. People keep wondering why the semi's won't fall yet when you check out the levels of short interest in that sector they are at/near all time record levels. NVLS cuts next quarters guidance by nearly 50% yet the stock is now 10% higher than when they warned two weeks ago. Why you ask...because undoubtedly shorts are tripping over themselves to get out when they figure it won't go down. The study of past bubbles suggests that we are at a period where the balance has tipped back towards being long/a cyclical bull is emerging given the massive level of shorts supporting every dip. Im personally sticking with small caps in strong bases and letting others play the overvalued techs. Downside volume totally died on the push down at 1260 and the bulls siezed on this imo. If 1521 gets taken out which I expect soon look out above...valuation or not.