As soon as I wrote my prior post, the short squeeze kicked in and we traded sharply higher. The action feels much to me like last Thursday, when we had an energetic recovery from Tuesday's very poor action. I suspect we will have more back-and-forth action in the near term, rather than the one-way road to new highs we experienced for so long. Of course, anyone looking for this market to change character has been the subject of ridicule, but that may actually be a contrary indicator at this point.<table id="rmystoryad336" align="right" border="0" cellpadding="5" cellspacing="0" width="336"><tbody><tr><td align="center"> <!-- begin ad tag (tile=2) --> <script type="text/javascript"> if (typeof ord=='undefined') { ord=Math.random()*10000000000000000; } document.write('<script type="text/javascript" src="http://ad.doubleclick.net/adj/realmoney.com/;tile=3;sz=336x280,300x250,336x850;ord=' + ord + '?"> <\/script>'); </script><script type="text/javascript" src="http://ad.doubleclick.net/adj/realmoney.com/;tile=3;sz=336x280,300x250,336x850;ord=9074784540220760?"> </script> <noscript>
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</td></tr></tbody></table> My stock of the week, Warner Chilcott (WCRX - commentary - Trade Now), is perking up and I have a few longs in play, but I'm still inclined to look much harder at potential short plays, like Qualcomm (QCOM - commentary - Trade Now) and NBTY (NTY - commentary - Trade Now). I'm not going to be aggressive there until this strength fizzles out, but I'm liking the short setup for the next few days more than most of the longs I'm seeing. At the time of publication, Rev Shark was long WCRX and short QCOM and NTY, though positions may change at any time.
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</td></tr></tbody></table> My stock of the week, Warner Chilcott (WCRX - commentary - Trade Now), is perking up and I have a few longs in play, but I'm still inclined to look much harder at potential short plays, like Qualcomm (QCOM - commentary - Trade Now) and NBTY (NTY - commentary - Trade Now). I'm not going to be aggressive there until this strength fizzles out, but I'm liking the short setup for the next few days more than most of the longs I'm seeing. At the time of publication, Rev Shark was long WCRX and short QCOM and NTY, though positions may change at any time.
