Hi Art: I see it but can't believe it ! the more bad news the higher this stock goes,
if AOL would just declare bankruptcy, I reckon it might even shoot up to
$71 again.
I saw it trading after hours yesterday, it traded almost a million shares
after hours just behind the news, and it ticked down to close at 34-1/2
( but that's an instanet close ) and not the official NYSE close,
which was 35-1/2..anyway it opened at 35-1/4 and went right down to 34-1/2
and then started up, and kept on going up..
My take on what happened was when the bad news hit, some people shorted
her..last night, this filled all the GTC buy orders under 35..that the market makers had..then when she opened and started up, the shorts got scared
and bought back higher than they sold. The buying back of the million
borrowed shares ran it up, and momentum buyers jumped in.
It flew in the face of those who jumped on it short term because of the bad news. Myself included, ( but at least I don't short ) except via puts.
The lesson I learned is bad news does not always effect every stock the same way..the shorts actually drove the price up..
The GTC ( good till cancel buy orders )under 35 got what they think
is a good deal, as that is who the shorters sold to.
Me I think she will come back down,..she didn't get to her more resent
ceiling of 38, if she breaks that Bears like me are in a heap of
trouble, there was a lot of stock sold today at 36-37, and a million
shares was bought under 35..a third of the volume today was shadow
volume..shorters buying back borrowed shares. It reminded me once
agine to go beyond open and close prices , look at the volume,
in respect to the price..and to try and determine a mean average
trade price in respect to were the most ( keepers ) were bought at,
as the shorts covering create an artifical high..today I put the
mean price at about 35-1/2 same as before the news..it really had
no effect except that last nights shorters, got the short end of
the stick..and are holding the bag..and gave all the GTCs an in
for under 35..
Jim |
