RE: Placement share gone21 Nov 2019 19:26
Manaboutown- let's use your figures.
So, let's say they did do that from the previous week's high! At some point they need to close the short in order to make the profit!
However, in this case, we are in a situation where there is significantly more buyers than sellers. Now, assuming your theory is correct and there was a placement.
Now, add the fact that we closed blue today and if you subtracted by sells from placement/short you would be left with a significantly higher number of buys.
So, tomorrow I wouldn't expect a volume of 600m but it would be interesting to see what the market makers would do if the buying continues tomorrow as it has been today?
Short or no short if there is more buying pressure then sells and any tree shake is met with overwhelming buyers, the market makers would have no alternative but to go long.
However, if they have open shorts and need to close them this would create and even bigger reason to raise the share price.
Ow obviously it depends on the buying punter and volume, but as the share has been traded and there is good liquidity, I think you will find that many people will find this very attractive and we will see a strong surge in share price.
Oh, and let's not forget the technicals and the technical traders who will love this share.
As a final note: I would disagree with a previous post stating that everyone who got spiked last week has sold. I would say that the overwhelming number of people who find themselves underwater in a stock, keep it because you have not lost money/or made money until you sell. So, for this reason, I believe that the free float is smaller than we think as many shares are at present in sticky hands for now!