Friday, February 20, 2004
=========================
Industrial Services of America
(Ticker Symbol: IDSA)
IDSA first appeared on the watch list on
Friday, February 20, 3004, meaning that
a peak could develope. This meant that
the stock deserved some close attention
as possibly becoming a profitable short
candidate.
UPDATE:
IDSA made a new year- and historic high
thus far today Monday, February 23, 2004,
with intra-day peak of $21 just now, after
about 4 hours of trading.
Under normal conditions, the odds would
have very much favored the bears. But
be aware that a strong short-squeeze is
going on right now. Hence, very modest
initial commitment, with bulk of the cash
held in reserve for scaling in more short
position at much better and safer prices,
plus patience, is the best strategy to use.
Once the squeeze ends, one can expect
the stock to drop rather precipitously as
buying becomes exhausted. Patience in
waiting out the final top before pouncing
with more short positions is prudent for
the bears and should prove rewarding.
The near-term downside potential is
about $15, with further price declines,
longer term, to about $12 as probable.
As IDSA price is squeezed higher still,
the risk increases substantially for the
bulls and decreases correspondingly
for the bears. The loftier the perch is
the final price peak, the less risky and
more substantial will be the potential
downside profits of any subsequent,
new, short positions waiting to scale
in right then.
Industrial Services of America
(Ticker Symbol: IDSA)
IDSA first appeared on the watch list on
Friday, February 20, 3004, meaning that
a peak could develope. This meant that
the stock deserved some close attention
as possibly becoming a profitable short
candidate.
UPDATE:
IDSA made a new year- and historic high
thus far today Monday, February 23, 2004,
with intra-day peak of $21 just now, after
about 4 hours of trading.
Under normal conditions, the odds would
have very much favored the bears. But
be aware that a strong short-squeeze is
going on right now. Hence, very modest
initial commitment, with bulk of the cash
held in reserve for scaling in more short
position at much better and safer prices,
plus patience, is the best strategy to use.
Once the squeeze ends, one can expect
the stock to drop rather precipitously as
buying becomes exhausted. Patience in
waiting out the final top before pouncing
with more short positions is prudent for
the bears and should prove rewarding.
The near-term downside potential is
about $15, with further price declines,
longer term, to about $12 as probable.
As IDSA price is squeezed higher still,
the risk increases substantially for the
bulls and decreases correspondingly
for the bears. The loftier the perch is
the final price peak, the less risky and
more substantial will be the potential
downside profits of any subsequent,
new, short positions waiting to scale
in right then.
