Was todays action a squeeze on the Longs?27 Jan 2021 19:22
Another thought,
The Longs if correct would be anticipating a sale price of at least north of 50p. (The bulls, myself included say above Β£1 is possible).
The market probably agrees with the longs? If that is the case, the market would have to squeeze the Longs by crashing the SP and calling the margins. After all the market has an awful lot to lose, and dirty tricks will be employed when big money is at stake.
Now that the majority of the longs have been wiped out, would that not mean the next direction of the SP will be swiftly upwards and beyond to where its true value is?
The market must know that EUA have to come out with a statement, and hence the justification for marking up the SP before the fresh army of longs come in.
Now, I am no expert on this type of trading, but is there an expert out there that can explain this side of things? Is what I say plausible?
I notice this website still has 29.5p as the closing position. If I did not know better, it looks like the market wants to sweep this dodgy pricing action under the carpet and away from our memories so that it is not obvious to many people what went on today.
Do not forget the fundamentals and the World class companies involved. UBS, DLA Piper etc, etc.
Time will tell, and it could be very soon indeed.