Shortseller's Lament

Sometimes I sit back and watch regular investors and I hate the way the game is stacked against us.

Last week was options expiration week and the shorties were crushing the stocks. Then we turn around this week and the markets surge. It's no coincidence, believe me. As I pointed out, the odds of the market continuing to spiral down were growing less and less. Time to cover positions....after options expire, of course.

It sucks also because most retail investors (you and me) were just starting to pile on the sell-side bandwagon. Ooops, sucker played again. Now the market is bullish just when you went bearish.

Just as the market swung hard to the downside because of short selling, it could swing hard to the upside because of covering.