Anavex Life Sciences Corp (AVXL)

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re: "Support scalping swing trading? Why would anyone do that?" (in AVXL)

In an abnormal (e.g. this) environment, walk-downs are done by an MM level entity alternately shorting the price down and then covering as they go. They try to do this to avoid losses and also avert the proverbial "short squeeze". Swing traders and the much maligned "flippers" are actually competing with this process. It means that the manipulater can't (naked) short as many shares into the momentum top of the little covering rally, and similarly, stepping in front of them on the bid, means the manipulator will need to cover at a higher price. You may have heard the expression "fighting fire with fire" ?

Another way to look at is, what spells the end of a bull market? When everybody has bought. After everybody is full up, done buying, all it takes is a feather to knock the price down. And there currently seems to be an effort underway to scare potencial new buyers off. OTOH, swing traders are going to have some funds left to support the bottom. Theoretically, it impedes the process. How much depends on how agressive the manipulation is and how much resources thay are willing to expend to accomplish the goal.