In case you are not aware, any market consists of buyers and sellers. If this was a buy (as you put it), there must have been seller(s) too. This can be an individual, institution, trading desk of some firm, specialist, etc. - you take the pick. BTW, if the seller was the specialist, you can be sure that he will make the price go down.
Whether it was at the bid or ask is not very relevant. Trading desks often front-run the large orders of their clients. If that is the case, this trade was simply them making it cross the tape. IMO, softechie's "money flow numbers" are useless because of this reason.
BTW, short-sellers don't cover 500,000 shares in one block. My guess is that some institution wanted to dump a big block of shares and their brokerage's trading desk has been selling the whole day.
And what is this obsession about "how will short-sellers cover 60+ million shares" ? The CNC short-sellers are not trading it based on TA or momentum. Most of them are betting on deteriorating fundamentals. They are in no hurry to cover. I have been short CNC for a few months and I might be short for a long time.
Have you ever looked at the short interest in BOST in the final few months? If I recall correctly it was 100+ million shares. If you would have bought it based on the theory "how will short-sellers cover 100+ million shares ?", you would have lost 100% of your money
Just to humor you, here are some potential sources of supply
- Momentum longs who got in CNC based on the Wendt news. Some of them are clueless about how to evaluate the financials. When will their patience run out ?
- Sellers based on TA.
- Institutions bailing out
- Jacobs losing his patience
- All those insiders buys were on margin. At some point of time, they will be sold out.
- Removal from the S&P 500 (IMO, it is coming)
- tax loss selling
BTW, how will longs sell 400 million shares ?
Regards,
Rajiv |
