When less than a couple months ago Meredith Whitney upgraded shares of Goldman Sachs (GS) near the $150 level, reiterating her sell rating in shares of company Capital One Financial (COF), we urged investors to avoid shorting COF since its upside on a percent basis was higher than Goldman Sachs itself at least short term. The stock market proved us right, while Capital One Financial rallied above $34, our target on the stock, shares of Goldman Sachs only gained 12 points since then, less than 10%.
We believe an excellent job has been done squeezing institutional and retail shorts in the company Capital One Financial to the $34.9 level. At this point it is guaranteed most of them closed their short positions with heavy losses.
Recently, we updated our bullish view on shares of Capital One Financial when several articles were published on the internet by retail amateurs on SeekingAlpha.com and elsewhere, inviting investors to sell short Capital One Financial.
A professional contrarian view based on complex algorithm trading and several technical indicators made us believe the stock could in fact reach the $34 level never recommending it to sell short avoiding heavy losses.
Beyond Trading recommended to close long positions in Capital One Financial (COF) at $34. Shares of the company are currently trading at $34.9
Disclosure: No position in (COF) at the time of this article