shorters will often buy shares on the way up even
Post# of 1023
Posted On: 04/01/2016 10:15:23 AM
shorters will often buy shares on the way up even though they have short positions on the very same stock. this protects their losses on the short positions as the gains from the stock going up will offset the losses from the short position.
so, when you see a sudden price upswing like SCIE had, some of that volume was longs, some of it was day traders, and a lot of it was shorters buying in who had no intention of letting this stock go up. once the shorts saw enough money going in, they will use their shares that they bought in to drive the price down and use computerized selling to keep driving the ask down.
the hope is the shorts can move the herd off the cliff with their shotgun blast style of selling. as shareholders sell, the shorts will recoup those shares at a profit.
what we saw when SCIE hit the 9's was a mirage orchestrated by the shorts. only about 1/3 of those holders are actually longs, and those longs are what is left right now. we'll see this game repeat itself dozens of more times so get used to it.
i misread the activity and added again in the 6's as i thought the shorts were done with their game. apparently i underestimated the extent of their positions. quite impressive. as long as there are enough longs and you remain long, we are immune to that activity as its designed to shake free the casual investor (which was me a year ago). hell, after holding RMHB for a year i feel like a battle hardened war verteran. ha
so, when you see a sudden price upswing like SCIE had, some of that volume was longs, some of it was day traders, and a lot of it was shorters buying in who had no intention of letting this stock go up. once the shorts saw enough money going in, they will use their shares that they bought in to drive the price down and use computerized selling to keep driving the ask down.
the hope is the shorts can move the herd off the cliff with their shotgun blast style of selling. as shareholders sell, the shorts will recoup those shares at a profit.
what we saw when SCIE hit the 9's was a mirage orchestrated by the shorts. only about 1/3 of those holders are actually longs, and those longs are what is left right now. we'll see this game repeat itself dozens of more times so get used to it.
i misread the activity and added again in the 6's as i thought the shorts were done with their game. apparently i underestimated the extent of their positions. quite impressive. as long as there are enough longs and you remain long, we are immune to that activity as its designed to shake free the casual investor (which was me a year ago). hell, after holding RMHB for a year i feel like a battle hardened war verteran. ha
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