Hi, Morag -
I hope you don't mind a comment.
I have seen no evidence of a margin selloff yet: simply the sudden sale of some shares into a vacuum.
I didn't want to scare people when I posted that, at or below $3, TD would possibly make margin calls. There is no proof that it will happen.
OTOH, I felt it was unrealistic to pretend that margin calls have not become possible - depending on Monday's action.
And there's the thing of it - we don't know what will happen.
There are all kinds of possible reasons for what happened today. Just imagine that you were a competitor of DMX's, with a budget: for $18,000 you could have severely damaged DMX's market cap. Easy as hell.
The big TD cross? Well, it happened after the close. Yes, it could have been a manipulation - or was it just a late-Friday decision by someone at TD to capitalize on the low price, for a client? Suspicion and paranoia make everything look planned, everything look conspiratorial. The fact is that TD was making small crosses all day.
This has a different appearance to every eye that looks at it.
Whatever happened, if it was Acqua-related, it certainly transcended any notions we've had of "price channels". That's what makes me think it has nothing to do with Acqua: that, and the fact that the close didn't follow the pattern of the day's trading, at all.
We just have to wait it out.
I wish you, and all longs on margin, the best of luck. I suggest that it would take very little to put the price above 3 again - just as it took very little to bring it below 3.
Best wishes,
Jim |
