Sudre
Active Member
P
Today on the other hand longs thought about the FUD of yesterday and realized they were played for fools. The shorts figured this out and did not deploy that many dumps on the market.
For example:
If on a day like yesterday Tesla trades 20 million shares and 50% were shorts then the shorts moved 10 million shares. Quite a lot of money and a lot of shares. MORE shares than are typically bought by bulls on a normal day. Easy to drop the price.
On a normal trading day Tesla trades 8 million shares and if the shorts are at 60% then only 4.8 million shares are dumped. That's not really very much when longs are in a mood to buy 8+ million shares and most everyone else is holding tight.
It seems pretty clear to me.
Percentage of selling is just that. Yesterday there was a VERY large number of shares traded. When the price was brought down to enough of an on-sale price the longs started buying shares hand over fist along with the shorts who were covering and making their fortunes for that day too. The shorts still maneuvered a LOT of shares to do that and they got lucky because the FUD worked so the price could easily drop because longs stood back for a while.Now this just doesn't make sense to those of us who are more simple in our approach and is more of the confusion I asked about the other day. If yesterday the short selling was high and the stock price plummeted, but today the short selling is higher and the volume of shares traded was about half of yesterday, how does the price go up?
Today on the other hand longs thought about the FUD of yesterday and realized they were played for fools. The shorts figured this out and did not deploy that many dumps on the market.
For example:
If on a day like yesterday Tesla trades 20 million shares and 50% were shorts then the shorts moved 10 million shares. Quite a lot of money and a lot of shares. MORE shares than are typically bought by bulls on a normal day. Easy to drop the price.
On a normal trading day Tesla trades 8 million shares and if the shorts are at 60% then only 4.8 million shares are dumped. That's not really very much when longs are in a mood to buy 8+ million shares and most everyone else is holding tight.
It seems pretty clear to me.