TRADE UPDATE – SWSH
Took an initial long position in SWSH at 5.59 for a short-term trade. Reverse of a pump and dump is occurring here. We'll call it bash and trash. In this case, short sellers have lined up to profit from overvaluation, corruption and a bevy of other perceived ills.
I am not making a bet on whether short sellers are right or wrong here. What I am making a bet in is that there are too many of them and that they are a jumpy bunch. The company has earnings being released next week. The stock has collapsed by 50% in less than a month. Some covering should begin happening soon here. The stock is also sitting on some important technical levels that will attract covering should some upside momentum become apparent.
This is a mover...so keeping it at a medium sized position at the absolute most.
Chart is here: http://www.zenpenny.com/wp-content/uploads/2011/05/SWSH-5-11-11.gif
