>>Hey Marc why must all sellers be shorts? Can't anyone who bought
the stock in the 20's and 30'2 be large seller here? Not everyone
holds out for that last 1/8.
<<
I'm sure Marc will answer your question, but I have to comment.
First, no one said that all sellers are shorts. However, if you reverse a long position, then you are essentially shorting psychologically if not technically.
Second, the timing for profit taking is completely contraindicated by events. Normal profit taking may not always squeeze the last 1/8 out of a position, but even short term traders usually wait for the next peak with bullish events less than 24 hours away. With an intraday high of 42 1/4 on no news, and an analyst's unabashed recommendation on CNBC during the middle of a sell down, and event driven bullish news soon to be eminent, the level of selling we experienced must be due to some influence other than fundamentals.
It's my contention that the sell down was generated, not spontaneous. It does not take much to spook investors into taking profits. AAPL does not have continuous intraday volume. There are plenty of opportunities to spark sell offs if MMs have the motivation. With the recent elevation of the short interest due to the false assumption of inventory stuffing, they appear to have the motivation.
There will always be a battle going on in any stock headed up after a large short position has been taken. The short interest in AAPL is well documented. It has been elevated for some time and is over due for a "short squeeze." Our comments are in reference to this battle over AAPL's price, not to the background level of normal buying and selling on fundamentals or technical indications.
HerbVic |
