What we are seeing today is a good old-fashioned shake-out. High volume but with limited daily range and a tiny downward movement in price. This means that there are ready takers for all offerings. As well, the previous bottom (21/11/08) is being tested. I think that there is a good chance of a rebound here, although I also suspect that the bigger fish are trying to demoralise the option holders so that they don't convert their options to FPO. If this is the case then the bigger fish can increase their overall holdings significantly with little effort by exercising their right to take up non-exercised options after expiry. Doing this means that they don't have to play the slow accumulation game buying the FPO - they get what they want all at once by taking up the expired options.
jmo dyor
CXY Price at posting:
4.9¢ Sentiment: None Disclosure: Held