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Posted On: 01/09/2022 9:56:30 AM
Post# of 148884
Emmitt wrote:
Buyers will be attracted to stocks that have support. Pretty simple but often painful.
my response:
I own CYDY and Novavax (NVAX). Both may have set records for being shorted.
It seems to me that good news or great news, attracts
1) new longs that have been waiting (weaker than folks who've done good DD)
2) weak longs that had sold and now come back in for the big parabolic gains
3) weak longs that had sold and now come back, just to get even or a lttle ahead
4) day traders and swing traders and scalpers
So the shorts know, from experience that the above is true. They know from experience that when they come in short, and share price turns down, that all the above 4 categories are either quick to get out with a small gain or a small loss, or, will panic sell. This all can result in double digits share price drops, depending upon the number of buyers in each of the 4 above, and depending upon how much shorting occurs.
(IMO, both CYDY & NVAX are great buys at present. I think CYDY was the #1 most traded stock for the entire year of 2020! Wow, and look at us know, in a gutter with many discouraged investors gone or having drastically reduced their positions).
I also lost a lot of money with BNTX. I bought in a week before FDA issued the EUA. I suggest the above 4 were reasons for the drop, and would also in the case of BNTX, add a #5 notion of "buy the rumor, sell the news".
Buyers will be attracted to stocks that have support. Pretty simple but often painful.
my response:
I own CYDY and Novavax (NVAX). Both may have set records for being shorted.
It seems to me that good news or great news, attracts
1) new longs that have been waiting (weaker than folks who've done good DD)
2) weak longs that had sold and now come back in for the big parabolic gains
3) weak longs that had sold and now come back, just to get even or a lttle ahead
4) day traders and swing traders and scalpers
So the shorts know, from experience that the above is true. They know from experience that when they come in short, and share price turns down, that all the above 4 categories are either quick to get out with a small gain or a small loss, or, will panic sell. This all can result in double digits share price drops, depending upon the number of buyers in each of the 4 above, and depending upon how much shorting occurs.
(IMO, both CYDY & NVAX are great buys at present. I think CYDY was the #1 most traded stock for the entire year of 2020! Wow, and look at us know, in a gutter with many discouraged investors gone or having drastically reduced their positions).
I also lost a lot of money with BNTX. I bought in a week before FDA issued the EUA. I suggest the above 4 were reasons for the drop, and would also in the case of BNTX, add a #5 notion of "buy the rumor, sell the news".
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