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For those who trade intraday, here is an idea who may wish to investigate further, about how you can trade against the bots on ESG, and win.

Have a look at the price of ESG on most days. On those days when there is a sizeable drop on the DOW, the algorithm sells down hard, causing TA's stop-losses to be invoked and hence a further drop. This also flushes out nervous investors. They then buy back cheaper.

However, what interests me more is what happens on most days when there has been no such drop.

The shorters know that most significant announcements tend to happen either before the open of trade, or in the hour or so thereafter. As such, they tend not to sell down in the first hour (until they are certain they are not going to be caught short with a significant announcement). After that period is when the push down begins. It may get pushed down up to 3 cents, only to buyback towards the end of the day (to ensure they are not caught short by an announcement at the beginning of the next day's trade.

Anyone who is interesting in pure day trading might like to look into this more thoroughly. You can work out what the algorithm does by observing its pattern over a long period. It give you an idea of what the algorithm is designed to do, how shorting avoids major losses, and then risk-manages such that there is no exposure on the next morning either.

And if you know how it works, you can get ahead of the curve yourself.

Personally, I think any short-selling of a major takeover target takes significant blue-sky risks, unless they were privvy to very good 'information' or have another reason to want ESG's price lower or contained. And one may well ask who wants to short a known takeover target?

But for me, I am happy to sit, watch and wait for the catalysts to unfold.

Yaq