Looking for the bottom, page-268

Guys, you have to love it. IGO broke the recent high and got its best week. The daily short interest fell down to really low at 388K yesterday and this means the shorts are peeing in the pants. For 2 weeks they piled in and sold short IGO all the way to 4.89 then IGO bounced to 5.62 and the shorts sold it down to 4.99 again before we have a big run up again. The daily short volumes were most over 1.2 million shares each day with the top at 4.5 million and then only a couple of days ago at 5.5 million shares. A lot of short shares were sold before ex-dividend so the shorts have to pay 26c dividend. I can imagine how much underwater the late short trades are by now. So, shorts are scared. The more they borrow to sell, the more exposure they get, and the chance is that instos will soak up the shares ...

It's not ever yet. There is no hurry to load up now even though it is now a lot safer than before. We migh have the bottom at 4.89 and ex-dividend low at 4.63 (very briefly before IGO shot up due to news about Chinese mine suspension).. We never know until a while from now.

If we use the low at 4.89, IGO is now 16% up. That's not saying anyting about bottom. For this stock, you need about 50% jump to confirm a bottom. The conventional 20% rally to confirm a bottom is not for IGO.

The problem I see is that we have a very good week for all miners. So, weeks from now miners will go down again and IGO will go down with teh sector. And furthermore, the shorts will be back. They won't accept the loss that they ranked in for the last 2 weeks. When teh voluem goes down and there is a lack of buyers, tehy will jump in a sell hard again. This would be the time to buy more. I would not buy at short term top. Stick to the principle of buy low sell high. Not the other way around.