Post-Trade Analysis: Long Position SONY/Short XLK
Real Vision: Finance & Investing
00:00
Are You Right for the Wrong Reason?
When i say reasons, ok, what i'm referring to is identifying and pin pointing of the actual market driver. So let's say i'm long x i z because i think it's going to get taken over by a large competitor at a significant premium. Then the very next after i put my long trade on, let's say, the stock suddenly rallies forty % in a few minutes on massive volume. But it does so because there's some moron hedge fond out there who, as short x is in massive size, and started blowing up in an unrelated position. And this was a short cover that triggered other short covers for a short squeeze rally. So am i right directionally?
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