So, I thought it important to draw attention to a few things ,some empirical evidence, evidence based on fact, not on The Chinese
or shorting
conspiracy theories, or even Chinese shorting conspiracy theories
The market in general has been pulling back, aggressively at times, for nearly a year. See the SPX, and XJO below
This indicates that most of the listed companies in the world have been selling off, an explanation of why this is the case is everywhere around us, and requires no elaboration.
More specifically though, specialised commodity miners have been hit aggressively, especially ones mining commodities, that themselves are retracing significantly. As an example, Aluminum miners such as Alcoa,(8Bn MC, Down 65%) and our own beloved ASM . Take a look at the commodity charts and the company charts below, see anything in common?
The commodities will bounce when demand returns, simple supply and demand principles apply here. The world economy will need to be in a boom not a bust for this to happen.
Traders will short the company because no-one is buying the stock, when buyers return, shorts will cover, all very simple. No one is deliberately holding the price down, if that was the case we would see huge volume daily as the shorts continued to push the buyers back, this is not the case, because there are no new buyers. If you want to make money in the interim, join them, open an account with FP markets, and open a short on ASM, this will hedge your current losses.
Lastly , growth stocks are getting hammered for the last year also, another feather for the ASM cap, look at NVX below, also a market favorite last year, now in the dog house, just like ASM. Anyway, I hope this brings some clarity to things, I'm stuck in a forced hold here unfortunately, but I'm confident things will start to improve in the last few months of this year, I have explained my reasoning for this in an earlier post. Best of luck all
(20min delay)