what is the SHO? i got killed going long CALM last week (with it's huge short interest, great earnings, etc.). Another post made mention of the SHo list (i assume its an indicator of naked shorts outstanding?) and how CALM was on it. obviously for the future I'd like to understand how a stock being on this list impacts my trading (or lack of) in that stock. what are the implications of a stock being listed? thank you for any thoughts you can share.....
Wrong assumption. http://www.nasdaqtrader.com/Trader.aspx?id=RegSHOThreshold But, even SHO is no longer valid since the elimination of the uptick test. Don
well, perhaps then my question has less to do with SHO and more to do with levels of short interest then. i am trying my best to develop screening criteria for trade entries and i blew it big time on CALM. thinking, incorrectly, that high short interest and blow-out earnings were likley to send the stock higher i entered. then proceeded to give everyone my money. so looking back i thought possibly that inclusion in SHO was some red flag that should have warned me to stay away. i guess it boils down to: should high short interest stocks be avoided in most cases?
Since the days of derivatives, the short interest has become pretty much useless. So many just like to short stock, buy calls, sell puts (reverse conversion) or hedge with ETF's or SSF's that the short stock number doesn't really matter. IMHO, Don
thank you don, that is a reasonable position. i will still lose sleep though wondering what caused my calamity in going long CALM. i was actually hoping that the SHO list, naked shorts, etc. could be blamed. LOL.
I know the feeling. I am long (covered call) CALM. Typically I avoid owning shares while earnings are being reported, yet bought thereafter at 35. The selling has been relentless. Fundamentally the stock is doing extremely well. I guess we will have to wait-and-see if institutions pick the stock up off its 50-day M.A. pS If so, look for a very strong run up.
yeah let's hope so.... i usually avoid earnings season too....but not becuase i expect a company to have TRIPLED it's earnings, then fall like a rock the next few days!
It is valid for one reason. you can bet your bottom dollar the bad guys are in it, and will do anything to get it lower. Their power is unbridled and awesome. Now, let's see what the Fuld revelation brings. After all, he didn't need discovery, did he? The SEC doesnt' either, but they are, how can I say this delicately, thieves!!!
What I meant by "wrong assumption" is that SHO has nothing to do with Short Interest. SHO is the old list of stocks that didn't require an uptick during the test period last year. That's all I was talking about....I'm still deferring to you about all the up/down manipulation stuff, my friend. Don