shorting in the classic sense is selling into the market if you think it will go lower to accumulate more at a lower price,that is the peasant case for shorting.
the rules may have changed since the GFC , but the big boys borrow stock or in some cases dont even borrow just sell in on the basis of promised settlement then buy back on the rise paying only the margin between the sell and buy.
however algorithmic trading across a broad spectrum of stocks is simply about accumulation of stock or capital , you can play the game if you have the fortitude and can develop a strategy that mirrors the algo.
but works even on falling stocks if there is sufficient volume and volatility.
you can also lose more than everything , losses are not limited, my take on the current activity is uncertainty
and repositioning to reduce exposure , if like me you bought yesterday at 199.5 to ride a wave bought more at 184 to average down then choices are ,sit it out,trade it, or buy more and trade or sit.
this is something of a left field event China trying to shore up its economy and the US$ getting stronger.
currently i am exposed to stocks that depend on a depreciating AUS$, if i am right or approximately right it might be good, other than good I will just have to ride it out, FMG management are not fools when it comes to financial issues, after all is said and done they got a pur iron play off the ground with innovative approaches and very thorough cashflow planning and those are enormous strengths, so have faith and wait till things settle just dont expect overnight miracles.
the icing on the cake will be when the USA FED Reserve decide to notch up interest rates,the money flow should then only strenghthen the US$ and we will be in pretty good shape as the biggest consumer nation on earth cranks up the biggest manufacturing economy on earth China .
a symbiotic relationship that should reap huge benefits for FMG.
these are only my opinions , my money is where my mouth is. I trade FMG and am happy to own FMG even if it means foregoing a dividend, of couse if it pays like last time it will be a pretty good yield. my average price at present is 192.2 not to good and might well be a very long trade
FMG Price at posting:
$1.79 Sentiment: Buy Disclosure: Held
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