We'd all love it to be the case that the 3.4mill needed to be bought on market to close the positions but unfortunately that's not the case as in the bulk of that position can just be swapped out against long positions.
Unfortunately you won't trap them due to the same answer as above but you could hurt the true short positions if something special landed keeping in mind that it can work in both ways.
I been saying since NEU entered the ASX200 that the shorting position was one to watch. As Insto's need to build positions they also need some insurance therefore hedging comes into it.
Agree about the % of shorts but the steady rising concerns me. I don't think NEU would even be in the top 50 most shorted stocks but you also don't want to make that list. It becomes a huge anchor around your neck when it comes to sentiment and momentum. IMO.
I've been saying since NEU entered the ASX200 to keep an eye on the short position as when Insto's take their positions, they also want some insurance therefore they whack a hedge on. It's not that the current position is that huge but it concerns me how it has built up so much recently (past 3 months).
Look I don't think NEU would even be in the top 50 most shorted companies but you also don't want to make that list as it can become an anchor around your neck in regards to sentiment and momentum.
Re the chart, here's what I like. Currently (today) you are seeing the SP leave a small gap open and skip across both the 8ema and bollie median. To back this up, MACD also looks like it wants to cross into positive territory. (circled) All very good things.
A concern I have in the short term is that the upper bollie isn't far above and you can see what happens when the SP spikes above that! Therefore a bullish movement would be for the SP dance sideways a little and the red upper bollie divert to head higher giving the daily candles more room to smoothly climb higher. Surely I'm not asking for too much??
The all important weekly for loooong holders is still showing a consolidation zone. Important to note is the lower MACD chart (circled) which is still in negative territory and also a reason why traders will be only looking for short term trades. Get that to turn positive and you might be in for a nice run IMO.
And lastly I'll add this. The BIO sector is on the tear ripping to new recent highs. Heaps of money flowing into the sector.
Enjoy your weekend.
Cheers.
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