The higher this market goes the more likelihood of a crash & the higher it goes, the bigger the crash.
If it crashes like it did in 1987, stop losses will be useless.
I have mentioned it previously that the futures market fell 17%, then 25% overnight before finishing down 56%. The physical market followed accordingly.
At some point, major holders might want to make a killing on CBA. All they have to do is start selling & the price will drop like a stone. What better time to do it, after the shares go ex-div. They could buy put options, sell call options then start selling shares & make a motza. It is only a matter of time.
The shorts can bide their time. A small dividend of $2.25 should not worry them.
A bit of history. If my memory serves me correctly, sometime within a few years of 1970 a company called Antimony Nickel Nl was being shorted, mostly by the stockbrokers. The price kept going up & up & eventually there were no more shares for sale. The price went to about $50.00. It was then discovered that a father & son, Alexander & Thomas Barton owned more shares than existed & they were not selling. **promotion blocked** stepped in & made the Bartons sell for $20.00, thus protecting the brokers. The company was de-listed in 1986. I hope my memory served me correctly.
I wonder who is shorting CBA.
CBA Price at posting:
$165.98 Sentiment: Sell Disclosure: Not Held
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