No offense was taken. Todays trading was peculiar. My best guess, and it
is only that, is that the press release this morning caused: (1) some long
selling; (2) some shorting; and (3) some momentum trading. I don't think it
was a good sign that it broke 6, (as low as 5 3/4), but it didn't appear to
stay there long. Although it finished down for the day, it finished pretty
close to its high for the day.
Overall though, down early on big volume, some, but not full, recovery on
much smaller volume. I am not a technical expert, but my impression is that
the trading activity was not positive. Obviously, however, there was some
support either from buyers or the MM's, and don't really know which.
The actual number of shares traded will be 1/2 of the total volume since
NASDAQ counts each buy and sale as two shares. I don't understand why, though,
short sales have a disproportionate impact on volume. It is still one sale and
one buy even if the sale is with borrowed shares.
It is also possible that some of the sales today, if they were from margained
longs, caused some shorts to have to cover because their borrowed shares were
no longer available.
Obviously, there is no way for any of us to know exactly what happened.
In all probability it is a combination of all of the possibilities since
there are always many different views and positions.
In any event, the last thing SOLV needed was more controversy and uncertainty.
Unfortunately for SOLV's stockholder's though, that is precisely what they got
with JR's problems and the mixed signals from the press release.
Just my thoughts....
Troy McKinney |
