You can be sure that other hedge funds are long, playing the upside momentum. I have no dog in this fight. As they say on the street, standing aside is a position too.
“You can be sure that other hedge funds are long, playing the upside momentum.”
No, they’re not. Their trading algorithms tell them paying $300 for a $10 stock is a retarded trade which they won’t make. But shorting a $300 stock that’s worth $10 is a big green signal. Welcome to the bear trap. Before long they will use updated algorithms and software to identify ‘flash mob’ bear traps and avoid shorting them until they lose momentum. Only the dumb ones will stay in their short position after the retards arrive. Though it’s very difficult to outrun a mob.