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Message: RE: It will be interesting to see what happens today. (Tugs alert!)/LL/Doni

RE: It will be interesting to see what happens today. (Tugs alert!)/LL/Doni

posted on Jan 11, 2005 07:23AM
The ``average`` investor (no-one has ever given an accurate description of what that means) will ALWAYS wait for ``confirmation`` of his decision to buy or sell, which by the nature of the word means in most cases the major action has passed him by. As you all know, the time to buy is when the situation is the bleakest and to sell when it`s the most rosy.

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``

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