My friend from Thinkequity here in SF says the quants were really unwinding this week, which might explain why the retailers and the banks, etc., had such sharp rebounds on Wednesday.
Bullet points for Thursday:
- These huge funds, the so-called quants with their short sale techniques and blasts of barreled air, DROVE some of this stuff -- the small and mid cap specs mostly -- far below where it should have been trading these past six months, just by the sheer wall of constant selling and derivs and so on.
- And so, if that is remotely possible, and the now flustered but still profitable quants are unloading their shorts and covering, especially on the easily moved small fry, but also including the Big Apple and others, might we not see some viscious upside moves? (I don't own Apple but it is a good stock to point to for purposes of activity and swings.)
- As for specifics, allow me please to say yet again that I am not a trader but that I have cracked the buyside code after 24 or so years of mistakes. My new book project, Actionable & LARGE, will go into the blow by blow.
- I believe we will see some rapid rises in small names, for various reasons -- some are valid takeout candidates at prices currently that reside below enterprise value. In this category, without naming names, I put WiMAX equipment companies and select disease diagnostic companies.
That's all for now Voldy Morts. Have a great day! For more: ThomCalandra.com.
-- Your friendly Tiburon writer at thomcalandra.com
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