The Lockup Game Is Over

Looking for more signs that things have changed: Everybody was playing the lockup game for a couple of months there. They were shorting these stocks with impunity.

But once everybody figures out a game, that game is over. Once the Wall Street Journal started listing the lockup expirations, and people thought that shorting expirations was like shooting fish in a barrel, it became a dangerous game for the shorts.

Now we are playing it the opposite way: When we see an expiration coming, we figure that the jackal shorts are all over it, and that we can come in and crush them and make big money on the long side.

Again, know your tape. In the pre-Memorial Day market, people made fortunes shorting stocks betting that the insiders would bail. Now, their shorts are getting their heads handed to them with this gambit.

Pretty funny.

The great bear hunt continues!