Hey kangaAn interesting analogy with Porsche and VW. The squeeze...

Hey kanga

An interesting analogy with Porsche and VW. The squeeze on the price of VW was a result of the hedge funds having to cover their naked short sold shares( shares that do no exist or do not have a registered owner sold onto the market by a knowing broker through an exchange)when the word got out that Porsche wanted to increase its share holding in VW.

When they tried to cover their naked short VW shares it become apparant that porsche had the majority of the real shares in the market the hedge funds were caught out and could only by back at higher and higher prices when the volume of real shares become available.


One hedge fund manger in particular was seen crying on T.V and remarking how Porsche's actions were unscrupulous how ironic.

I wouldnt be surprised if there is an element of naked short selling occuring on the ASX even though it has been banned. Ask our resident short selling Guru he may know

Then again it is only illegal if you get get caught, hey?

Thx Shylock

P.s I wonder if old support $ 1 has become new resistance.

P.p.s At this juncture it is difficult to analyse price movement. There is a level of consolidation occuring. The daily is bearish with the stochi ready to turn down. The weekly however is ready to turn up from the oversold

P.p.p.s Personally I favour the downside and unless a major pandemic occurs I cannot see a bias to the upside and as such i stand my ground until proven otherwise.

P.p.p.p.s Hey Mitta quality analysis keep it up.