Taking a short position in junk bonds is a challenge for the retail investor.
In my analysis, short squeezes will be opportunities to slowly and cautiously build a short position.
As a full disclosure, subscribers to The Arora Report have a short position in WDC.
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Note: I may initiate a short position in VHC within the next 72 hours.
Yes, Muddy Waters has a short position in Sino-Forest, and thus it is talking its book.
One way to cope with this unpleasant environment is to take a short position in U.S. Treasurys.
And heaven help you if you allow your emotions to cloud your judgment in a short position.
At the start of the year, Bridgewater turned bearish on U.S. bonds and built up a short position.
Sell stops can be orders to close out a long position, or they can be to initiate a short position.
And Einhorn, who was public about taking a short position in Lehman's stock (hoping it would decline in value), proved prescient.
Typically, when investors take a short position, or make bearish bets on a stock, they borrow stock to magnify their bet.
In fact, Peabody Energy may be a good candidate for a short position, or a bearish pairs trade option, within the sector.
This gives you the equivalent of a short position in the Euro.
That signaled a short position in the futures, but not for long.
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When these profitable divergences occur it is time to take a long position in the underperformer and a short position in the overachiever.
Traders should enter GTC Limit Orders to reduce the long positions or to add to a short position on strength to Risky Levels.
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Ackman, whose Pershing Square has a short position of some 20 million shares, addressed the Herbalife situation at the Harbor Investment Conference in Manhattan Wednesday.
Taking a short position in puts, which means the investor agrees to have stock dumped on him at an inopportune time, makes some people downright queasy.
Tintle also manages risk in futures positions by using options, such as selling call options against a long position or selling puts against a short position.
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In those cases the arbs take a short position in the acquirer equal to the number of shares they expect to be awarded when the deal closes.
The index is 76% weighted to a long position in futures contracts on two-year Treasury yields and 24% weighted to a short position in 10-year Treasury yields.
Traders looking to hedge a short position on the networking sector might consider a May 40 call to take advantage of HRS's momentum and bearish sentiment backdrop.
Similarly, for a short position that has become very profitable, you may move your stop-buy order from loss to the profit zone in order to protect your gain.
And since house-price cycles tend to last for a long time, says Mike Poulos of Oliver Wyman, a consultancy, it can be expensive to sustain a short position.
More recently, Einhorn demonstrated the power of short-sellers, unveiling a short position on Green Mountain Coffee that sent the stock down more than 10% on that same day.
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Peabody Energy ( BTU - news - people ) may be a good candidate for a short position, or a bearish pairs trade option, within the sector.
The company made more in cash last quarter, than Amazon.com has made in its entire existence, said Einhorn, who was quick to note that he does not have a short position in Amazon.
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Both have put emphasis on the fact that their fund, one of the largest bond funds in the world, had dumped all of its Treasury assets and even taken a short position against the dollar.
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In addition to journalists and analysts, Buffett said he was looking for a bear on the company, ideally someone with a short position, to participate in the annual questioning of the billionaire and his partner Charlie Munger.
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Lehman's public relations campaign is made doubly difficult by the public critiques of a well-known investment manager, David Einhorn of Greenlight Capital, who has taken a short position in the stock, which means he will profit if it falls.
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