Re: Short interest climbs 8,200
in response to
by
posted on
Mar 21, 2017 12:13PM
This is something that I ruminate on quite often, because it gets right down to the nuts and bolts of the market...the actual trading. Those who say its simply a matter of supply versus demand are right of course....but as shown in that Wyckoff article, and with Cramer's interview, and with countless other examples....there are numerous little manipulations that go on in the public markets.
There are roughly 50 million shares in the public float....I think that's pretty much a given. How many of those shares are in "dumb money" retail hands is up for debate. How many shares do you and I own SF, combined with all the other retail posters on this and other boards.
Just to give it a number let's say there are 25 million of those 50 million that are in the hands of the sheep....I use the word "dumb money" not because I'm characterizing retail holders as stupid, but because we lack the ability to affect the market in a tangible way. We are the ones the real players try to buy low FROM and sell high TO....and I think for the larger part they are sucessful.
Right now we have RVX trading somewhere around $2.20 to $2.40 a share.....that's reality and verifiable. Now comes the time for some speculation. Let's say that RVX is going to trade for $20+ per share....it just needs the real market players to get it moving. How? Moves on request, gap ups, cross trading (I forget the term for that right now).....
Nobody has to agree that the market is manipulated (both ways, up and down) but for me. I take it as a given.
But here's the problem...those 25 million shares (probably less, but I'm spit balling here). As Koo noted the other day when we gapped down at the open...if the PPS had climbed at the open, then holders probably would have held tighter and maybe even bought more. But with a gap down I'd bet dollars to donuts that some bailed out fearful of a bigger drop....happy to get $2.35 or therabouts.
Remember, in this hypothetical example the real market players are gonna be taking RVX north of $20.....so $2.35 is a steal.
I could write reams and reams....but I'll wrap it up by saying its my belief that the Market Pros who really set the market, its my belief they want to have control over as many shares as possible in that public float. Why? Assuming they're able to get the PPS up to that level I'm suggesting of $20+.....then they're gonna want to be profiting from their efforts. If RVX does get to that lofty valuation I can see it being written up in mainstream publications like the globe, getting mentions on the 680 News market reports at 26 and 56 past the hour....DM doing interviews on BNN and other avenues by IR consutant type promoters.
Of course if a BP takes RVX out....then all of this is 100% moot.