All that you saw on Thursday was a plan to waylay the shorts. They were happy as could be when they saw the stock decimated thinking there would be follow through today. I"ll bet that very few quickly covered their
shorts on Thursday.
What you saw today was nothing but short covering as the shorts ran to cover when the stock surprisingly ran up. There was very little new buying as most people would not touch the stock after what happened on Thursday.
The stock will open up on Monday, and resume its downtrend after an hour of trading.
The problem with shorts, is they are a generally negative type of person. If you short a stock and have to cover because you are losing your butt why would you not go long. Instead a short will short it again at a higher price. The trend is your friend why go against the trend. There is a reason its a trend .
It is difficult to know what will happen Monday. It is foolish to buy at these levels but then again it has worked so far for the longs. I am keeping the short I started around 187 and will wait for the November earnings report. I don't know how a new car company that makes insignificant profit in a crowded field can maintain a 23 billion dollar value. How can they grow fast?
I agree, but this market has not been rational. It does seem like it may have been a classic dead cat bounce after 2-3 big down days. I had a feeling it would happen today or Monday. The key will be what it does Monday. I am hedged either way, but I really want a good pullback and this stock is definitely due for one.