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Re: NEOMBRIDGE post# 28604

Friday, 09/27/2019 3:05:47 PM

Friday, September 27, 2019 3:05:47 PM

Post# of 34625
I Agree with you … on the shorting part.
Myself and 2 or 3 others here have been the loudest voices denouncing short sellers and whether there was or was not some kind of shorting "collaboration" going on concerning MRKR's crazy huge drop in price (oh, by the way … after reporting GOOD NEWS).

We all were SO anti-shorting that we actually took some jabs about, OK, enough already complaining about the shorts, I'm sure you read it.
I, personally don't short stocks, never have, and I explained here why in the past.

But, I would like to say that what traders are doing (and talking about) is somewhat opposite the theory.

In other words, if a stock is heading up from $5 … and a trader says "I'll sell when it gets close to $6, no one is going to short based on what 1 or 2 traders do, it's the opposite.

The trader KNOWS, that if you just look at odds and probabilities, a stock that is climbing back up after a huge crash, with huge shorting … 90+% of the time will have pullbacks along the way, each and every time there is a decent move up.
And those pullbacks will be caused by 2 factors, short term profit taking, and new short positions at the new higher price.

After a huge crash, that is a nervous stock, a wary stock, which just makes it more likely for people to say, let's take some sure profits, because I'm more nervous and wary of this stock after such a crazy huge crash.
And people also know … the shorters are still out there waiting on their new higher entry point.

It's just a matter of Knowing what there is to Know and acting on it.
All the trader is doing is, seeing that that is exactly what will happen most of the time, and profiting from it if it's going to happen anyway.

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