Wave Systems Corp. (fka WAVXQ)

[rwk]

zen, I tend to think you are

right about the causality of the recent sell off.

Of course the missing element to offset those supply side pressures was the lack of a demand side. But I think the supply side will disappear quickly following the next cc. If it does, the short side traders will find no significant offered side supply to allow them to cover their shorts in a profitable way. They are sitting on mark to market gains and confusing that with locked in gains.

Dig's observations today concerning the trading pattern reveals an effort by short side traders to push prices lower rather than to establish short positions at the best possible levels. It also speaks to their limited ability to add to their short positions at these price levels. This all points to an slow grind up in prices as supply dries up and demand grows as news and results improve.