Originally posted by rvajna
The shorts are well in control here. Smooth sailing for them as they bring this down. Notice how at the end of the day it closed on the day low which is also the 52 week low. Given how easy it has been for them in the last 2 days it will be interesting to see how far they will go. Will they be more daring and try for 10 cents? Is it even possible?
Yeah, anything is possible, a bout of extreme greed could set in for the shorters. You right though, its been almost a perfect storm for the shorters, scaring many out of their shares. I think the GFC is still fresh in many peeps minds, thus current volatility gnawing away at their resolve.
While I dont see a GFC type event, growth assets have run up in value based on ultra-low interest rates, and now that global rates are rising (have been for a while) those assets need to adjust down to reflect those higher rates. That's pretty normal, happens at the end of each business cycle, about every 7 years.
I cant stress enough the importance of understanding and preparing for end of cycle conditions.
(20min delay)