@KamikazePilot Well, Tuesday night in the US, the DOW dropped 240 points. US market thinks that Trump may not get his health care bill through Congress and this means that the tax cuts and infrastructure spend may not happen either. But that, of course is not necessarily connected.
There is strong by-partisan support for the tax cuts and in particular the infrastructure spend. And boy- their highways need help.
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Then, Thursday night, we had the tragic incident in London. That also creates a temporary sense of instability.
More generally, there is also a breed of shorter out there who are hell bent on trying to manipulate the market (using media connections; spreading false rumours; high volume, bot driven, down tick selling; churning sales between related entities to create an artificial price, etc, etc)- that is pretty clear and well documented here on HC.
It's also illegal. However, they are not interested in a level playing field, ethics or any of that old fashioned stuff.
ASIC has said very recently that it takes an interest in that sort of thing. ASIC also get the short data daily. The manipulation that has happened in ACX's case is very blatant. I'm sure ASIC is aware of it. Let's see what the regulator does.
Fines for market manipulation can be pretty severe.
It's not so much that the short brigade knows something. It's more a case that they are experienced in illegal and unethical activities, and are not afraid to use them.
One tactic is to try to wrong-footing and panic retail investors by deliberately selling down on the release of positive company announcements.
A disappointing share price reaction invariably takes away from the significance of the announcement and leads to investor confusion and angst- which the short brigade revels in.
Still, overall I would not be concerned in the medium to long term. Business is booming for Aconex atm, and there is real risk for the short brigade, in many ways.
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This post is based on my own research and is not investment advice. When making investment decisions, always DYOR.
