Deception and Desperation

We look at today's market performance and see A DROP OF 8c - ohh how awful the sky has fallen in on our lovely share price.
Well maybe not! I mentioned the other day how it would be pretty tough to be short 9m shares right now, and so it would be. What to do? Well, the thing is there is an economics 1 principle of supply and demand. In an elastic market situation the higher the price the more goods are offered for sale and the lower the price the fewer goods are offered for sale. This is generally true, in my opinion, this is how the share market behaves UNLESS there are distortions brought about by a tightly held shareholding AND by bots driven by algorithmic games.

What's this all about you might say! Economics 1 no less. Well, if I was short a lot of shares I'd send my bots out there to offer to sell small parcels and maybe buy small parcels to get a feel of the elasticity of the market. If I found it did not take many shares "dumped" to drive the price down that's what I might do to try to cause a panic sell off - I'd need a panic sell off as buying a handful cheap wont help me - I'm 9m short after all.

So what do I, no expert mind you, read in to today. Not a lot to be alarmed about. Look at the figures. It took as few as 253k shares to drive the close to down 8c BUT that is not really the story and here I'm indebted to a very capable HC SPL poster who pointed out that the Volume Weighted Trade Average Price is what we should be looking at. And I did - on a VWTA price of $1.762 the market was only down less than 3c to yesterday's close. We should not let these games "frighten the horses" Please don't follow me just do your own research. I'm holding my breath to see the SPL great story unfold - soon I hope.