Looks like the only way MM's can unwind the large short positions is to either
1. Keep shorting
2. Drive the price as low as they can and cover as much as they can, Hoping to shake a few weeks hands and free up some shares
I would expect higher lows on big volume for the foreseeable future....
Good luck all longs
I'm not long or short. I did day trade this the other day for a nice 6%. But no one should hold a long position until the deck clears, and that could be a long time. And...the chart is now beyond weird, BB bands tighter than a drum and could go either way, a big jump up, or...a HUGE drop from this level. The risk is ALWAYS to the downside. There is no earnings coming anytime soon, that has been verified by several. I suspect with all this legal business, they ain't gonna say noth'n for a long time. Investors, long termers are not going to hold and the shorts who shorted at 60, 50, even 40 are not concerned, why would they, nothing coming from DMND and there's not going to be.
30 is gap resistance, when it officially
converts to gap support then that glaring hole
you see on the chart from 30-35 will fill
just as quickly. 35 will be the new support
possibly as soon as Tuesday on earnings.
shorts need a doom miracle for them.
the walls are closing in on them fast.
Agreed. I have bought into large short position stocks like this before and the only catalyst it takes is good earnings coupled with takeover rumors (which will be rampant and mostly baseless) and the stock corrects. I am hoping that is what will happen here.