good article on SA, no one is selling except the shorts . violent move to 5 possible in next week , when T3 expries----------------------------------
After briefly touching resistance at it's 200 day Moving Average of $3.76, a wave of abusive short selling ensued and didn't see a real pause until Zynga's shares began registering regSHO violations for fails to deliver on shares trades of 10,000 or greater; and after a 11% retracement from it's 200 day Moving Average.
According to data from FINRA's daily regSHO reporting requirements nearly 60 Million additional shares were sold short from February 8th through February 12.
Zynga's share enjoyed a small upswing early in Wednesday's trading after regSHO violations appeared from FINRA at the close of Tuesday's trading session.
In addition to the unusually high short volume there was very unusual options activity in the Feb and Mar 16 $3.50 Puts which would suggest that the "bear raid" from Monday's high of $3.75 was engineered in an attempt to depress Zynga's shares to cover the already sizable short position of 13.1 Million Shares that caught trader's off guard after the better than expected earnings report.
This is by far my favorite. Given the recent increase in abusive naked short selling of nearly 60 Million shares in 3 trading sessions, the big shorts were caught off guard and had to throw all in to prevent being open to break points on options plays after a nearly 100% run from it's 52 week low. Though Zynga's price is still far from it's IPO issuance, that is a huge short position in regSHO that will soon be getting forced buyin notices from their compliance departments once T3 expires in the next few trading sessions.
The short position will have to cover and with a recent disclosure of a number of Key Financial heavy hitters updating their regulator filings; a long position at these levels shows little downside risk and wouldn't do the short position any favors as they struggle to find shares for hypothecation.
This is a significant opportunity for all ligitimate investors who see the merits of a growing company. DO NOT SELL your ZNGA stock for at least the next 3-4 trading sessions as that will expose any fraudulent activity that is being noticed by the SEC and FINRA. If you want to see how ligitimate investors can thwart unscrupulous traders/investors when they manipulate the trading system then DON"T SELL YOUR ZINGA SHARES FOR THE NEXT 3-4 TRADING SESSIONS. However, be prepared to sell when the stock price may explode significantly.
If you want your shares to be kept away from the short make sure you have them in a CASH account, they can't be loaned there I never use margin and always keep my stocks in cash accounts keep this in mind