On Friday 10.8 of the 11.4 million MTS traded were new short sales as per ASX. That's 95% of trades.
Most, being 7.4 million were traded in the last two hours of trade during which period SP went up 2c to 119c.
To me they were shorting like crazy at the end of the day but the price was going up!
Thursday was a similar story but not as extreme, being 7.9 of 12.5 million, i.e. 63% of trades, 7.7 million in last two hours. Price dropped only ~1c in last two hours but bounced around more. (Most of Thursday's drop took place early in the session when volume was lower).
Why is so much of the shorting happening at end of the day, and why is price relatively strong then?
Is it because:
Shorts are from overseas and so only wake up and "play" then?
Or are shorts seeing seeing buying pressure near end of day so are trying to overwhelm it?
It will be very interesting to get the aggregate shorts in 4 days time to see how much of that trade was shorts closing, as it will give an indication of how confident/desperate they were.
Anyone that can offer some insight into this?
Were they shorting like crazy because the price was going up, because they know MTS is on a one-way ticket down?
MTS Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
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