Despite this morning's good news, there is HUGE selling pressure...

Despite this morning's good news, there is HUGE selling pressure on Lynas. Almost 23 million on the sell side as I write this.

The buy side is healthier than it has been for a while, but only 14 million on there, and a lot of that is well away from the current price, whereas there are millions at most stages of the sell side near the current price.

Now some of that will be those selling out because LYC drops out of the MSCI index today, and some will be selling just to get out! But there will also be a lot of shorting going on - even in the face of good news. Which just goes to show how shorting can become a self-fulfilling prophecy, and most definitely bad for the share price.

I do note that first feed to the kiln does NOT make Lynas a "producer" despite a couple of headlines, but it is certainly a major step in the right direction. Yet the sellers not only persist - they are ramping up the selling pressure in major style.

Talk about irrational...! Lynas remains one of the Top 10 most shorted stocks on the ASX, and will remain a plaything for the big end of town as long as it has the volume and attention that it currently does.

Bummer...!