Trading, page-505

My apologies for typo and bad use of grammar etc....

2.5% of shares shorted in PLS is hardly anything to worry about. I am showing a chart of HVN being one of the latest high profile accusation of short sellers damaging valuation.


The uptrend in HVN ended the moment Sept16 peak could not be tested. Once that support broke, it would have been a tall ask to expect it to keep rallying to that Sept peak but as always it is possible, just very slim odds. 2017 showed a double top which in itself is a sign of a market top on the rally. We now have a current break of the immediate swing low (Nov16) and price slid into the long term support then bounce. I am expecting price to form a bull swing to the next resistance where it is likely to meet selling pressures. You could short there but the rewards are pretty limited.

For each stock to be accused of shorting as a cause of its demise is just whipping out the blame game. The chart technicals were alerting way ahead of time. Shorters picked up late into the game and probably thought whipping out negative sentiment could cause the bottom (support) to fall out in addition to accounts scrutiny identifying possible accounting issues but they are most likely to get some burn marks where the sun doesn't shine!

shortman report shows that 15march is when the short volume increased aggressively and the time of maximum damage in the selloff. I suspect valued instos were waiting at 4.26 and equal low right to the cent from July16 to start buying. Was that a coincidence?

These type of strategy when you buy with all the blood letting and guts fallen out requires 'balls of steel'. A good case study is FMG when Jim Chanos the famous China bear were shorting the 'living daylights' of that stock and telling anyone willing to listen that it is bankrupt. What he couldn't have known is that IO prices returned and stayed elevated from middle of last year against every sane analyst predictions. Prediction is a game of chance not facts.