RE: Last chance for the shorts to close19 Sep 2018 00:14
Your theory is plausible.
Nothing would surprise me, and there are buyers in the pet/vet sector - as we have already seen.
Im really interested to see what happens tomorrow.
You can't ignore the 13.5% of short sells. At this point it's as much about psychology as it is fundamentals. It's akin to knowing there's a big bully at school or the fear of crime. Will he strike again? How long before he goes home? Some will fear holding the stock under this umbrella of 13.5% into March 2019 as we leave Europe.
You can see how the shorters have time and psychology in their favour.
If we discount Moniman's theory for a moment, and concur that the hedge funds are shorting in the belief that there is further to fall - then God love us all because as i said early, there will be a lot of pain felt by someone sometime soon. And it's very plausible that the pain will fall to the hedge funds. Simply put, with all their 'current' might and determination the price is NOT falling.
As i said, let's see the buyer appetite tomorrow and Thursday to measure the current flow. For sure, Engadine will be watching and they will act accordingly - which could be no action at all. They are effectively leaving all the running to those who want to go long.
Better than a TV drama :)