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IBDvalueinvestin (98.29)

When All the Hedge Funds Scream Sell, that means they already loaded up Short.



April 07, 2009 – Comments (2)

My guess is many loaded up short on Thursday & Friday of Options expiration week in March. They are starting to feel the pain now and are screaming for people to sell. Their strategy worked yesterday until late in the day when a rebound occurred. This morning looks identical to yesterday and it looks more and more like buy the down gap open and sell the rebound late in the day type trade again.

One thing I have learned in the market is that the more you scream for people to do what you want them to do, the more they don't listen to you. 

2 Comments – Post Your Own

#1) On April 07, 2009 at 8:07 AM, IBDvalueinvestin (98.29) wrote:

Wowthe Hedge funds forgot to pay these analysts, The entire Software sector gets Upgraded a few minutes ago:

Software stocks upgrade details
As mentioned earlier RBC upgraded Software Beta stocks saying they believe CY'Q1 marked the nadir for software stock fundamentals and are now recommending investors increase software exposure to drive alpha into 2009 and beyond. The firm says while Q1 results will still be quite weak in estimation, the next several quarters should see reduced earnings risk, easier comparisons, lower FX headwinds, stimulus spending benefits in many verticals and the formation of a solid fundamental and valuation base to grow from. They note the hill ahead still looks steep and bumpy, but they think there is little room to fall based on the backdrop. The firm upgrades to Outperform from Sector Perform: Adobe (ADBE) tgt raised $30 from $20, Digital River (DRIV) tgt to $40 from $25 and Microsoft (MSFT) tgt to $27 from $20 within their infrastructure software universe, Symantec (SYMC) tgt to $20 from $17, within their security universe, and (CRM) tgt to $45 from $37, Omniture (OMTR) tgt to $18 from $11 and Taleo (TLEO) tgt to $16 from $12, within their SaaS universe. They also upgrade to Sector Perform from Underperform for Concur Tech (CNQR) tgt $24 as they believe that although fundamentals remain challenged, valuation downside at current levels is likely minimal.



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#2) On April 07, 2009 at 10:09 AM, Rehydrogenated (33.66) wrote:

I agree, I always look at yahoo finance's main articles. For the last two days they have had all negative news on their main page. "The rally can't last" etc.

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