Reviewing short selling since remapping announcement on 8/2/21 my views are as follows:
1. When the short selling posts began weeks ago trading in ewc shares dried up, with turnover falling to very low numbers.
2. The market was allowed to find its own level around 8 cents and in absent of big selling drifted up to 9 cents on very low turnover.
3. With shares around 9 cents the short seller has re-entered the market to keep a lid on prices.
4. The latest data on short selling from ASIC is 19,416,373 ewc shares as at 11/3/21
5. Turnover has increased substantially over the last 2 days but still well below historical levels. We won't get ASIC's data until next week.
6. The short seller is reading all the hot copper ewc posts, evidenced with his/her sharp drop in activity in trading when the first short selling post appeared.
7. Buyers of ewc are reluctant to do any aggressive buying in fear of being hit buy short seller.
An overview of the ewc market since remapping is that the initial rally to 17 cents was snuffed out by the short seller who would have had a margin call alerting him/her when having the short position in hibernation with little activity. The short position did reach over 50 million shares years ago when the price was around 40 cents. They made a small fortune, maybe this time they will have to give a bit back. I prefer rallies in markets to be impacted by investors taking profits not short sellers.
Add to My Watchlist
What is My Watchlist?
