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spec machine

11/02/20 6:01 PM

#4129 RE: smith199 #4127

Could the decline in Gulfslope’s stock price be due to say for example, a panicked Equity Seller slapping a new low dirt Bid, which was closing out a short position? If so, no bueno for Gulfslope’s Stock Price. How am I doing?



If you're talking about an individual trade, no a multi-month decline can't be due to one trade

Also, to close out a short position requires a purchase

A "panicked equity seller" wouldn't hit a low bid (sale) to close a short

You got the direction wrong, a panic to close a short would (or could) cause a "short squeeze" and result in an increase or temporary spike in share price

Again, if we step away from the microscope and gather our situational awareness, it is market forces that drive direction

Market forces include trading pressures and a company fundamentals but also to a very large degree include forces beyond an individual stock such as broader economic trends

The share price on any given day of an individual stock is a VERY small factor in the larger picture

It takes concentrating on the larger picture to trade successfully over the long term, IMO

There's my expert opinion, I hope it is helpful to you

spec