CU6 - ASX Charts, page-2136

Former Federal Reserve Board chairman Alan Greenspan once asked ' How do we know when irrational exuberance has unduly escalated asset values, which then become subject to unexpected and prolonged contractions? And how do we factor that assessment into monetary policy? ‘Often there is not easily recognizable rhyme or reason why markets move as they do. Having traded many markets over my life - with stocks being by far the slowest of moving and perfect for my ageing brain what I have observed is a change in market dynamics post 2020 fueled largely by un-earned money and leveraged debt and a rise in passive investment options.

The effect ? What I am seeing a move towards a trading environment that resembles that of a faster moving market. And with this transformation come some of these faster market traits. Mutli market hedges cross platform and inter country hedges. Increased use of stops. Directional momentum strategies. Twenty five years on from Alan Greenspan speech I think it important as he also noted not to underestimate or become complacent about the complexity of the interactions of asset markets and the economy.

As for the shorts ? I believe that some degree of short holding is healthy. Looking at all ASX aggregate short holdings for the last 10 (reportable) trading sessions for stock with an aggregate greater than 3.5% - my healthy peak, and less than 10% only nine stocks have increased more than 20%. Of those nine, seven have delivered positive returns for the last 5 trading sessions. One of these was CU6. Moving forward with CU6 ? I have bought and held and sold and traded. I like this stock but for me the risk reward ratio for a longer term hold is beyond my comfort zone at present. Just my QA TA perspective but I just do not like not knowing and even after taking into account a possible changing of market dynamics for me CU6 is currently standing out from the pack for reasons not long while opportunities present elsewhere. Top nine aggregated growth shorts referenced above in chart format below where we can see CU6 aggregates having grown from 4.55% to 6.55% with measure against similarly short dispositioned peers. Enjoy the rest of your night and the week ahead. GLTAH.