normal market short covering is good-----you took a risk on the downside based on your value of the
stock and set your stops accordingly---you get stopped out
if the true value warrants an up tick.
forced to short cover based on manipulation ------you took a risk on the down side and the up tick is inflated based on manipulation (not the true value of stock).
Massive forced to cover shorts based on manipulation will only work if the value of the stock continues upward. That is to say the market says we have value.
If no value-----no one will buy and this will force selling.
I rest my case !!
This is ridiculous
Started by
mcleert
, Sep 19 2008 08:43 PM
1 reply to this topic
#2
JAP
-
- Traders-Talk User
- 575 posts
Member
Posted 19 September 2008 - 08:59 PM
normal market short covering is good-----you took a risk on the downside based on your value of the
stock and set your stops accordingly---you get stopped out
if the true value warrants an up tick.
forced to short cover based on manipulation ------you took a risk on the down side and the up tick is inflated based on manipulation (not the true value of stock).
Massive forced to cover shorts based on manipulation will only work if the value of the stock continues upward. That is to say the market says we have value.
If no value-----no one will buy and this will force selling.
I rest my case !!
There will definitely be much less volitility to the upside. When the market starts it's next big leg downward, there won't be any big short covering rallies to help reverse it.
For those who think Wednesday was the bottom...
