repeating what I said last week, I think the low volume is terrific news. Demonstrates the massive short position ( 41% ) may no longer be able to drive the price down as easily. Since the 52 week high of 7.09 on Sept 19, 2012, shorts have been able to slam PPS down at will. At least until the current uptrend began about the beginning of July. Keep in mind this is the first or second most shorted stock on the NASDAQ.
The recent PPS strength on very low volume is wonderful. JMO.
If you are long and it goes up, then it is good. Period. One then hopes it holds and builds upon that gain. This is even better. If your implication is that a low volume rise in PPS is always followed by a precipitous drop, then you are overly generalizing.
volume comes from disagreement on what fair price should be between buyers and sellers. well, there are other reasons - for example, most transactions on SPY and the stocks included in it have to do with funds piling in or out in a non-discretionary manner that have not much to do with price discovery on the individual stocks.
But for a stock like GTAT it's probably the biggest reason for high volume days. Well, that and media coverage, but GTAT is a "behind the scenes" company that doesn't concern the end user (and thus the media) very much, at least most of the time.
if everyone involved agrees mid $6.xx is close to fair price at the moment, neither buyers nor sellers are interested in showing their intentions and moving the price against them. To clarify, buyers want it for cheap (there's a lot of confusion about this on Yahoo MB's). So as it happens, in calm times like this, they both recede and wait patiently for the price to become more favorable to them, hence the low volume.
I don't know why you'd call it either good or bad.
I'm very curious for the next short report (due out after the close September 11). It comes right after this anticipated Apple announcement. Would love to see things get interesting. So much uncertainty makes this an interesting stock to be in for a short, medium, or long-term position.
Me too! Very curious. Don't think it will have declined too much! Shorts are very reluctantly letting the price rise very slowly. However, someone said that the short list only includes trades SETTLED. If true, then Aug 13, 14 and 15, relatively high volume days where PPS rose are not included in the Aug 15 short figure of 49M.
So perhaps short interest will be down a bit. Probably not too much though.