Saw my portfolio drop 6% during lunch yesterday while eating salted fish. Made the fish extra salty🧂
Players sweep price as low as 1.10 well below the 30MA.
Last time the price saw massive buy along the 1.16 region. 1.12 was a transient price before holding at 1.16 levels. This was only in 12 Sept.
The sweep was of course with catalyst, that YZJ ship building had a $180m book order cancellation. Having shared similar name and of course the maritime spin off considerations caused similar reactions to YZJ Fin. Both recovered most of the draw down the same trading day 6% down to about 1% down.
What this sweep signifies is 2 things to me.
The first, the shock to the system along with the news as a catalyst sends people into frenzy mode, forcing them to let go of their positions or to trigger protective stop losses. The draw down was 6% and most stop losses would I believe be placed at 3 to 5% intra day. This strategy forces a change of hands allowing the players to accumulate shares at lower price levels to average down the buying from the past few days at higher price levels.
The second, open arms welcoming the short sellers and speculative traders to take on short positions in hopes that the price will continue to fall. This was extremely short lived as climb back up was with quick succession back to support line. Locking the short players with a red that day.
My thoughts? If stock markets are a zero sum game which I still believe it to be. My loss is your gain and vice versa. If both short and long holders saw a loss that day, then who really made the gains? Big players with a lower average price signals that their target price is well above prices we are seeing now. Looking forward to the next catalyst (ETL)$YZJ Fin Hldg(YF8.SI)$
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