Muddy Waters Shorting Olam. Time to Sell?

Olam International - COT Proxy
Olam's stock fell after Muddy Waters report that Olam is too ambitious in reporting its profit. Muddy Waters report carries a lot of weight as they shorted Sino-Forest as well as other a bunch of other companies and those companies are on the brink of closing down now.

Even though the price has risen in early morning trading today, there is still a lot of downside. Based on our COT Proxy, the commercials has been shorting since early 2011 and another short signal was given in October 2011! The shorts are still in play and we got the signal way earlier than the Muddy Waters report. Stay clear of this stock until we see the commercials turn to net buyers.

Don't be fooled when Olam said that they are buying back some stock. Stay clear of that bull trap statement.

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