TA discussion, page-3397

Today I think we saw a prettty obvious short squeeze in the broad Oz market. The recent negative election hype exacerbated by the FBI disclosure a couple of days ago has created highly charged bearish short positions in stocks and ETFs everywhere and the US futures tonight are looking very bullish since the subsequent hosing down of the FBI position and the realisation that Hilary will more likely get up in the election after all, so the short squeeze is on there too.

I think that the main driver of the AJX decline this past week or so has been election spooked holders, hence the relatively significant number of at market volume dumps. More than half of today's combined volume of 1.147M came from about 8 or 9 dumps of which about 5 were around 100K or more.

The sell the news factor probably marginally played into the price action as well but I don't think it was the prime cause of the problem at all, the sentiment was already wobbly because of the preceding negative market hype sell down. It was a useful strategic news event but not a significant price changing announcement IMO.

So the chest beating this past couple of days about the financial details IMO is largely irrelevant, the market got whacked and the small guys with a speculative flavour like Alexium got caught in the cross fire.