the changing of the tide , page-2

The institutional traders who are shorting this stock knew that they have to exit their massive short position.

The shorter knew that the tide is turning slowly against them.

The could see the writing on the wall that within the next 2 to 4 weeks TOL will be issued and that there is a growing support for Lynas in the community amongst the Malays.

The only way that they can unwind their short positions is to cripple the stock technically and by running the stops the can force the share price lower. Once all the stop loss has been triggered and excess supply has been triggered they can now quickly close out their massive short positions. In other words they have blatantly stolen the shares of people out there who has set stop losses for the stock and the other target was aim at people who have over leveraged and can not provide the funds quick enough for their brokers to close them out.

This strategy is to temporary scar the investor so that they will never come back. They aim at people who are highly emotional and one such investor i know (ArafuraInvestor) was so scarred emotionally from the experience he sold all his shares to the shorting firm who basically bluffed him out of his position. Once the stock is weakened they know its going to take sometime to recover as investors are too scared to go back to the stock once scarred and so the price can stay low enough to give them further time to cover their shorts.

They know very well the tide is changing and they need to get out quick and this was the strategy to unwind their position.