A Morgan Stanley downgrade by Jay Sole on the very same day the market soared.
If the downgrade did not happen, then a major short squeeze ( price increase) most likely would have ensued.
SEC please take a look.
Could Morgan Stanley downgrade the stock, have 30%+ annual interest from loan shares to shorts and artificially caused a lower stock price allowing known shorts sellers an opportunity to cover at a profit rather than cover after a loss caused by a massive short squeeze??
Two things a company can do. Executives could initiate some insider purchasing to show strength and support rather than the selling as they've been doing. Announce a stock buy back program. This alternative won't happen as company does not have cash. So it's up to Skul to come through with earnings and growth.
There is nothing for the SEC to look at. This is the way the market works.....everyday.....always has. You are up against people who are in the business of taking your money; it is how they feed their families and keep gas in the BMW. They take their business very seriously and it does involve preying upon the dummies who blindly believe that intrinsic value determines stock price.
Best thing is to stop being the prey.........just go with it......learn to trade with the predators. The very first secret to learn is to forget about the intrinsic value of a stock. Be concerned with its perceived value-to professional traders, not the value it represents as an interest in a company. The intrinsic value is only a component of perceived value. This is a contradiction that undoubtedly mystifies the directors of strong companies with a weak stock. From now on, remember that it is the perceived value which is reflected in the price of a stock, and not, as you might expect, its intrinsic value.
op...... although I agree that this has become one heck of a trading stock, I also believe that you are dead wrong when you say "There is nothing for the SEC to look at". Morgan Stanley knew exactly what they were doing and in no way were they surprised by the swift 16% crash in price. They released the DG minutes after QE3 was announced. I see no coincidence there. The shorts would have been killed if the stock broke out. MS was taking no chances. SEC should take a look at that now. It would be interesting to see what ties Morgan Stanley has to the shorts in this instance.
agreed on most of the above.. only differ in that i think intrinsic value is dependent on the time frame which ultimately prevail sooner or later. as a trader, one can be more concerned about the timing and opportunity cost, as an investor, you just have to deal with days like these unless you can time it well, in which case, only invest as much as you're willing to lose.
i took a hit as well but i'm in it for the fundamentals, so i'll wait and see how the earnings fare. giving management the benefit of the doubt, plus i've a full time job so i can't be bothered to track the stock day in and out.
thanks for the technical tips OP, it's appreciated.