I agree with the basic idea that the market is at a critical point. The losses for the market averages for the year are about wiped out, so fund managers have to decide whether to get in and make money so they can keep their jobs, or continue to short and try and drive down the market more before jumping in. I am afraid greed is in the drivers seat now and fear is in the back seat. The MMs could get burned big time if they continue to short now. I think they know it and are kind of waiting it out, thus low volume. If the market starts to run, we could be looking at another 10%-30% rise from here. MGM is an easy $12 stock from here, back where it was just before the stock offering a few weeks ago. The recession is ending and the market leads out of an economic downturn. All aboard.
BTW: Just got back from Vegas. City Center is a monster. Saw the model in the Mirage as well as the real deal. Workers everywhere on the project. Told one of the managers they ought to give stockholders a $.10 per share credit as a dividend towards a night in any MGM room. If you own 1k shares, a $100/night room would be bought and paid for. He liked the idea. Also suggested cashiers at the buffet ask if you are a shareholder. If you are, you would get perks like maybe a glass of champaign and a nice table cloth on your buffet table. They liked that idea too. People would be asking why do only certain tables have tableclothes. They are the stockholders. 10k people holding 10k shares is 100M of the float. The more people accumulate for whatever reason, the better the opportunity for a nice price rise.
I think investors are finally baffled as to which way the market is moving. There seems to be plenty of signs to argue both sides of the fence... I have NO clue but tend to think we will see a nice dip before long...
MGM has had plenty of opportunity late this week to break below 7, but did not. Large buyers continue to show up to support price. At some point, those buyers will gap the price and run it once they have their fill at these lower price.
The last 1/2 of trading showed buyers were aggressive and wanted to push the daily chart into more bullish level into the close. However, there was equal amount of large sellers to counter such and attempt. That is why we watch for volume gaps, as the accumulators can more easily set the tone in premarket push. With the failed attempt late Friday, one has to think they might try a Monday gapup.