A reminder to Longs here and on ST
1. Short volume over the last month and in particular the last week has been very high (as a % of sales and I have explained why that metric matters).
2. Last week we saw short volume as a % of sales average > 60% and as high as 67%
3. Yesterday we saw 73% short volume as % of sales - the highest I have seen in this stock since Kerrisdale.
4. This is a sign of:
A. Trapped shorts looking for stops
B. Trapped shorts trying to 'wear out longs'. I have mentioned this on stocktwits before, by manipulating the stock down on low volume while the company works away, those who are in the stock get 'fatigued' and worried. They want you to capitulate early even if it moves up hard.
C. This process, moves attention AWAY FROM VALUE AND TOWARDS STOCK PRICE
D. Why do they want this? Well that way longs capitulate sooner on 'pops' , they (shorts) can exit/cover sooner, enabling them to cover at a profit or at worst break even if they can't find enough shares on stops.
E. This is all part of the 'game'
5. Continue to focus on value even when the stock simply revalues on a technical basis or a decrease in shorting/covering
6. You will see many on the boards saying 'sell the pop, sell the pop' why? Again, this is because they want you to focus on PRICE and not VALUE. They will remind you what happened 'last time' to create fear of dips again - why? So you sell to them and they can cover more easily/at their advantage.
7. This process of 'swinging' the stock down is like training a dog, they keep repeating it until there is enough fear so that eventually you do what they want - ie get out early for them to cover at a profit then go long at a cheap price.
If you choose to play that game, well you will be the one breaking even, while shorts cover at a profit, then go long and sell you the stock at $8+
REMEMBER FOCUS ON VALUE AND ALL THE POINTS I MADE IN THAT COMMENT STICKIED AT THE TOP.
YOU DID NOT WEATHER THESE STORMS FOR $2-3 NOR DID STIRLING
