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How the Shorts Fueled the Tech Rally

By Jim Cramer

 About this article:
 Why did tech rally so viciously last week? Sure, it is possible to say that Cisco caused a rally. But the rally should have ended by the beginning of the week. Cisco doesn't have that kind of legs. The pin action can go only so far. I think there was something behind the scenes that I have put together that makes more sense. First, there were swirls for the last week from a multi-billion-dollar tech fund that went bust and had to liquidate. While these things are always secret, trading desks confirmed to me that supply was coming from one source. The supply consisted mostly of the highest-multiple Nasdaq-100 stocks: Rackable, Citrix, Network Appliance, Qualcomm and the like. In my old hedge-fund days I used to lean endlessly against a fund that might be liquidating. It was as close to free money on the short side as you...

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