Buy These 3 Dips as the Market Slips: Purefunds ISE Cyber Security ETF (HACK), SPDR S&P Bank ETF (KBE), Powershares QQQ Trust (QQQ)

The speculative nature of short selling suggests that the shorts were probably prepping for a Greece-influenced selloff weeks ago. The most recent short interest data indicates this is the case, as a few of the widely traded index ETFs saw larger than normal increases in short positions.

Knowing where the short sellers have increased their positions can be a key component of making the right buys on major corrections like the one we’re seeing today, courtesy of Greece.
The mechanics are simple: If short sellers are increasing their positions ahead of a pullback, it means the positions are likely to have been “presold” — thus, there are likely to be fewer sellers in the market on a heavily shorted position. (more)

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