Ive been thinking the same to a degree, but GXY has held up...

First 17764 Last

Share
Profile

Follow
GARETH78

7,747 Posts.

2750

12/05/20

18:45

Post #: 44581052
Share

Originally posted by Rooster100: ↑

Hi all, any theories on this one? For about 2 months nett shorts have been plummeting from their peak on the 11/3 of about 82.78M through to last figures 6/5 of 54.48M. That's 28.3M of short covering and puts the total short positions at the lowest for almost a year (26/6/19) when price was at $1.265. Initially the short covering appears to have assisted price jump from bottom to last top of about 33.5% - which makes some sense given the rate of covering. However despite nett shorts continuing to plummet, price now sits back at about where the covering started- you would think price would be getting a bit more assistance than this?

So why all of a sudden the reduction in short positions? Potentially a fund or prime broker calling back it's loaned shares? Just throwing it out there because I don't know the details of how it works. And if so why would they do that- is there some tax selling/position changes coming? That would not be good. Someone with better understanding might be able to suggest what's going on here, and apologies for the negative suggestions but in my short time in the market I don't think I've seen such continued short covering at such a rate without a corresponding and meaningful kick to the share price, so I hope it's just me jumping at shadows...

Expand

Ive been thinking the same to a degree, but GXY has held up fairly well in the last push down in the overall market from the 12th March to the 23rd March.

It stands out here up against WBC (Westpac). I know not resource but it shows the side ways movement much earlier in the latest downturn.

There is still an awful lot of shorts held and they are not going to sell without a fight. We need to move to the level of SYR to see a possible upward movement. Their shorts were at a similar level to GXY and look how they have dropped off, and their SP is benefiting, surely but slowly.

JMHO

GLTAH

GXY Price at posting: 78.5¢ Sentiment: Hold Disclosure: Held
8 Upvote

1 Great analysis

Reply