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Re: coastiretired post# 42509

Tuesday, 05/08/2012 1:36:47 AM

Tuesday, May 08, 2012 1:36:47 AM

Post# of 44374
Coasti: I know this sounds wierd and illogical at first glance, but, given the trading circumstances, some REAL selling pressure here would be most welcome.
The thing which has kept the price low and descending is the fact that, due to lack of real selling pressure, the only way the MMs can satisfy the buying demand is by short selling shares to the buyers, which necessitates the MMs covering those shorted shares at a lower price, which keeps the price low for the most part.
With some REAL shares being sold by La Jolla, MMs won't have to resort to shorting and covering lower constantly, can accumulate some real inventory for themselves, and can let the price run up naturally on the buying demand, whether there's good news or not, and can make their money selling their inventory at higher prices.

We're on a slow uptrend now, it began slow and is likely to continue slowly up, and as this has happened, there has been gradually less daily shorting going on. Hopefully this will reach a point where there's enough real selling happening that shorting won't be necessary for the MMs anymore. Time will tell.

nilremerlin

New long-term bull market from Oct. 16, 2008 (+6 months for underbubble overreaction) to Feb. 5, 2018 (+6 months for overbubble overreaction).

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