Reversal bar off of yesterday's lows After 3 da

Reversal bar off of yesterday's lows

After 3 days of successive attacks that drove TECO lower, it seems the bears relented somewhat which is why we got the reversal bar off of the low. Volume was light, with 683k exchanged, and the attacks were considerably less in magnitude and frequency today save for the ask pinning at 3 cents.

There was considerable bidding in the high 2's, and I called that out earlier today, musing that perhaps we have the bear camp 2 looking for cheapies. I will stick with that theory for now as this seems to be the best explanation for today's tape.

You see the bear camp 1 in my view has achieved 2 goals recently. First, they prevented a daily close above the 20 day moving average. Second, they achieved a close below 3 cents yesterday. I see them up at 3.5 cents which tells me that they would rather just play the game of slowly moving the price down week after week than going head to head against the half million plus bidding the high 2's today.

Their longer term offensive strategy is to get the price down a half penny every couple of weeks to a month and stuff any attempts at a breakout. They probably calculated that this is the best way not to get caught or to trigger more volume alerts from other traders. I mean, if they went 10 million into bid to try knock the price into trips I'm guessing that people who never heard of Treaty before would be stepping up to buy just on technical triggers.

Nonetheless, it's taking them longer and longer to move the price lower and the day of reckoning is coming for them. I gave out a number of swing trade shorts last week on my Ice Cold Traders board ( http://tinyurl.com/cn4h8ba ), but the last of them were covered today. Why? Because shorting into support will get you killed on the big boards. Apparently in pennyland the practice is to keep naked shorting until the bulls stop you dead in your tracks. We are in that vicinity right now and any way you cut it, there is no way the bears will be able to extricate themselves from their position without substantial losses.



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