No Sellers, Only Buyers

Anyone watching the stock will be wondering about the outsize ask at the close on Friday. We have insider buying at this price as well. The bid/ask spread has remained quite the same since the price broke above its longterm trend line.

I take this to mean that the sellers are all gone, since you need sellers to move the share price down. What you have are naked shorters loading the ask so it looks very big, but I believe only a small amount of buying pressure and they will pull the ask to a higher price. They can only sell into the buy as long as there are sellers, which is what they're waiting for. But there aren't any, and I don't think panicked sellers are about to show up soon.

As soon as they pull back the ask to a higher price, even one cent, they will be obliged to settle the market for every share they vended into the market at that price or below without actually owning one. It would only take the average volume or better of the 500k "shares" (-really, they're just empty offers without any shares to back them-) loaded onto the ask to move it back.

If there were normal buying and selling going on here, then the share price would have dropped, but there simply aren't any sellers, just naked shorters. If normal buyers start jumping on the stock in number, then these "offers" will simply vanish.

-F6