Hi Everyone,

IIROC just published the latest short report, a report that amalgamates all the short sales done, on all the different exchanges where HPQ shares are traded.  Link here to the report.

The latest report confirms my pretention that some traders (probably trading through TD) are trying to box HPQ share price at the $0.07 level.

My key takes away from the reports are:

• Between the February 1 report (covering the period from January 16 to January 31), and the February 18 report (covering the period from February 1 to February 15), the open short position in HPQ shares as gone from 65,600 to 230,000.  This implies that the open short positions increased by 164,400 during the last 10 trading days.
  
  
• According to the reports, the pivot point for these short sales is $0.071.

While there is no way for me to know if these traders are using a pure short sale strategy or a combination short, long strategy to make money, what is clear is that short traders need to buy back the shares the borrowed at $0.065 if they want to generate at least a 10% return on their trade, but if the shares price exceed $0.075 they are losing money on the trade...

The large bids by at 0.065 combined with the significant ask at $0.75 and $0.08 seem like good subjective evidence of that...

Remember that these traders are not here to make multi-bangers, they are looking to make quick and easy 10% return they can replicate multiple time over a given time frame.

That is why, short sellers, will not hesitate to interject doubt in the mind of nervous investors in order to get them to sell.

One last point I wanted to share this morning, is that one of the many tools use by short sellers to discourage long investors is fake ask, fundamentally an ask that is only there to create the illusion that there are more sellers wanting to get out.

Anyway, just wanted to share my thought with you this morning.

Regards,

Bernard Tourillon
President and CEO