The price is herded in both directions, atm the stock is trending down so it’s not surprising on any level that short positions are opened on the stock, it’s as obvious as saying that people are buying the stock when the price is going up. The only way the theory of manipulation through shorting is relevant, is when a stock is acting outside the parameters of its sector, index, or fundamentals.
From my last post you can clearly see that ASM is not isolated in its performance, a multitude of other derivatives have deprecated, more specifically growth stocks, who are NOT making money, which is clearly a reflection of the broader economic climate.
As a final example, I have been shorting Tesla recently, because the stock is trending down, not because I dislike Tesla, not because of its fundamentals, simply because the stock is selling off due to multiple factors. Shorting is an opportunity to make money, in the same way buying a long position is, the only people this does not suit are LTHs like ourselves.
But as I’ve detailed before, the fed will over tighten monetary policy and cause a recession, and will ultimately stimulate the economy again, causing the next major leg up, many macro strategists are supporting this theory.
As the famous saying goes, It’s always darkest before the dawn, and with a MC of 350M ASM will take off like a rocket once the fear subsides.
ASM Price at posting:
$1.92 Sentiment: Buy Disclosure: Held
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