Phillip, I think that the bandits, being closer to the "table" than we are must have known about the recent three releases, and thus lowered the selling pressure to allow a rally to evolve, possibly even instigating it with few major buys (I think someone mentioned two major transactions this morning, very similar to last week 2.1 MM shares and at the same price). You do the calculus yourself, they probably were unable to put out more than some 10 MM shorts through the last pump, they need probably some 50 MM or so, so we can expect them form time to time to go into the market cover few million shares instigate a rally (backed by happenstance with bullish news releases) and then short few more millions shares into the temporary enthusiasm. That may happen until the last bull exhausted their "averaging down" funds and then, my experience indicates that the final blow is imparted. I would expect few more exercises like tat, but from lower and lower points, but from my experience, this will lead straight to the one to two pennies range in few months. It is too risky to jump on these runs because they are so short and heavily manipulated.
I presume we will hear from the SH meeting some additional news to justify an additional run, and maybe a solution to the financing problem. Then, and only then, you can start with a new clean slate.
Zeev |
