In the face of "players" messing with our heads, the best thing to do is nothing (on screen that is)...
They can play all they like...but if nobody follows, they are shooting themselves in the head.
Pretty simple really.
Even when it looks like others are in fact following their lead by selling down...it is only likely them selling more, (to themselves), or crossing to "friendlies"...to make it look like others are selling.
In the end...if people are not falling into their games, the longer they do it, the more stock they lose and the more vulnerable they come to a reverse sting...in this situation, typically they will have to buy back...only they will end up paying more than their "sells" to do so.
Those using borrowed stock to do so may well find themselves on the wrong side of the trade...in a big way!
The offshoot of this is that one or two failures to know the price back does the exact opposite of their intentions in that holders find strength and confidence in not reacting...this leads to sit and hold mentality, which will result in the free float reducing and price rising significantly.
Yesterday a clear case in point...how many felt bomb-proof by the end of the day, in spite of a few nerves in the morning?
One or two days like this and the stock becomes almost bomb-proof...and the players either move on, or simply change their views to sit and hold.
Regardless of these short term views however, we are not far off achieving levels these players will find unattractive...prices above 35c, volumes reducing...and a clear upward trend tends to repel the swing traders...for the simple fact they find it harder to get in and out with both the volumes and success levels required to make it worth their while.
Looking forward to that time.
Cheers!
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
