RE: It will be interesting to see what happens today. (Tugs alert!)/LL/Doni
posted on
Jan 11, 2005 07:23AM
That being said the current action on EDig is somewhat a mystery for one reason. ``Where are all the shares at $.33 coming from``? If LL is correct and this is ``accumulation`` then who is selling for there to be ``accumulation``?
Beats me.....Are there enough shares out there willing to be sold at $.33? It would seem to me that any shareholder would very quickly be able to spot the ``floor`` that is being built here and hold out for something higher than $.33. I just can`t see the hordes out there hanging around daily to sell at $.33.
An unusual event is taking place, if we are to believe what we read about ``naked short covering``, that just may be the answer. It certainly does fit perfectly and answers all the questions. However I have been around too long to think these new rules will not be circumvented by ingenious MM`s. My personal opinion is the bottom of bird cages are now lined with these new regulations...with a hearty chuckle from ``Mr. Trader``
Could be wrong but self interest will always win out. The MM`s are NOT going to take in the ``shorts``