Last week was a real mixed bag. After small vol Mon/Tues, kind of expected high vol on Wed (exceeded my expectation) as the pressure to cover builds. Thurs expected the backoff and regroup. Fri expected low vol as Melbourne on public holiday. The week was very controlled as I think will be next week leading up to US election and PLS quarter report (may move forward a few ticks next week to get cover, but equally may go backward into a trap as below). However, it may be all on after the 3rd. A lot of people in US sitting on cash until its over.
With 130M +- a few shorts outstanding, I anticipate a lot of pressure for cover after 3/11 election and quarter report. With deleted stock, orders must flow, how fast those orders are filled may depend on the price willing to be paid - maybe payback time! KB was upbeat about things recently. Orders and a good market guidance in a low cost environment can do wonders - esp when there is a lot of money sitting about looking for a home. Looking forward to PLS getting back to a >1.0B MC for an index rerate (end Dec?) - yahooo!
Glad to get through 0.395, but we still may go down again from a trap. Only time will tell that one - already testing 62% fib (Fri). Depends on how much they want to spend to test again, or how many stops they are able to trigger to accumulate during the test - effort vs reward may be exhausted however. Personally, I don't think there is much left. Only strong hands and bots remain. Something has got to happen to cover the 130M, which leaves buying their way out - but that will be left as the very last alternative and to the last minute. Saw something the other day in a trade journal which I thought was quite apt for the moment - 'Dance like a butterfly, sting like a bee, watch the window as it can be very small' - time is short and getting shorter and shorter every day till decision time. Can't be delayed forever, otherwise - WHAM window to orderly and profitable exit shuts. Happy days
Good luck all.
PLS Price at posting:
40.0¢ Sentiment: None Disclosure: Held
(20min delay)