“The Strongest Indication Yet That Stocks Are Short-term Oversold” Released by Popular Financial e-letter Profit Confidential

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Profit Confidential says that the process of short selling involves investors simply borrowing stocks they do not own, promising to repay them later. If the stock falls in price, the person shorting the stock keeps the difference between the price he/she borrowed the stock at and the price it is repaid at. Short selling is a huge function of the market.

profit confidential

Profit Confidential

According to Profit Confidential, “Short selling on major stock exchanges has risen dramatically in August 2011 from July 2011. Historically, stocks have rallied when investors have taken a large short position in equities.”

Profit Confidential, the popular stock market and economic e-letter reveals today the strongest indication yet it has seen as to why it believes stocks are short-term oversold.

According to Profit Confidential, “Short selling on major stock exchanges has risen dramatically in August 2011 from July 2011. Historically, stocks have rallied when investors have taken a large short position in equities.”

Profit Confidential says that the process of short selling involves investors simply borrowing stocks they do not own, promising to repay them later. If the stock falls in price, the person shorting the stock keeps the difference between the price he/she borrowed the stock at and the price it is repaid at. Short selling is a huge function of the market.

Michael Lombardi, a lead contributor to Profit Confidential, writes, “The stock market took a big beating this summer. Worldwide, trillions of dollars were whipped off the value of equities. Investors thought the market was headed back to test the March 2009 lows and started selling stocks and shorting stocks. A recipe for higher stock market prices: lots of short sellers and lots of bears. We have both in the tent right now.”

Profit Confidential, which has been published for over a decade now, has been widely recognized as predicting five major economic events over the past 10 years. In 2002, Profit Confidential started advising its readers to buy gold-related investments when gold traded under $300 an ounce. In 2006, it “begged” its readers to get out of the housing market...before it plunged.

Profit Confidential was among the first (back in late 2006) to predict that the U.S. economy would be in a recession by late 2007. The daily e-letter correctly predicted the crash in the stock market of 2008 and early 2009. And Profit Confidential turned bullish on stocks in March of 2009 and rode the bear market rally from a Dow Jones Industrial Average of 6,440 on March 9, 2009, to 12,876 on May 2, 2011, a gain of 99%.
To see the full article and to learn more about Profit Confidential, visit http://www.profitconfidential.com.

Profit Confidential is Lombardi Publishing Corporation’s free daily investment e-letter. Written by financial gurus with over 100 years of combined investing experience, Profit Confidential analyzes and comments on the actions of the stock market, precious metals, interest rates, real estate, and the economy. Lombardi Publishing Corporation, founded in 1986, now with over one million customers in 141 countries, is one of the largest consumer information publishers in the world. For more on Lombardi, and to get the popular Profit Confidential e-letter sent to you daily, visit http://www.profitconfidential.com.

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Michael Lombardi