Ramallah, sorry been out most of the day, long lunch with a bunch of retired engineer mates so I missed most of the intraday action. Today, we finished sort of back where we started after the weirdo day yesterday. It looks a bit like we are going back into the consolidation pattern which we saw over the latter part of last week.
Shorting activity has been very low for a while including yesterday, pretty much insignificant considering the volumes this past couple of days. The medium term average volume is around 750K/day so the 2M+ volumes of the past couple of days shows there is a lot of interest on both sides of the market.
I don't know just what is happening with the selling which isgenerally real selling not shorting recently, so someone is still either doing some sophisticated short term algo trading or someone is still offloading a holding or a combination of both. When the opening rally was clobbered yesterday it was with real selling not shorts so that is a change from the way previous rallies were clobbered.
The difference obviously was the announcement and maybe most of the selling was just about the typical 'sell the news' stuff. The market is extremely skittish right now, jumping at shadows, volatile and very hard to predict, just look at the main indices intraday. If DNA holds around the 90 level and the volumes stay unusually high as of the last couple of days, something is going to give before too long.
We all feel here that DNA has pretty good credentials but obviously others disagree but I suspect a lot of the recent action on the sell side is just about short term stuff and not about substance and at some point they will either go away or some sustained buying will kick in to the extent that they will have no choice but to cash out and move on. We shall see, I am hanging in there, the potential is still there.
DNA Price at posting:
89.5¢ Sentiment: Buy Disclosure: Held
