The selloff was caused by three factors in my opinion.
1. the negative news on the Credit Suisse Case---taking company much longer than expected and the market was the company to win and now that looks less certain
2. possible loss on PR Muni bond issue. Governor change of stance is bearish for cash strapped MBI
3. Option writers...pinning the stock for the next several months
One or a combination of all caused the recent share slide. This company is not out of the woods yet and they need to begin writing new business soon to appease market participants.....otherwise if the rest of the market starts to sell off this could retrace back to 9 bucks again.
Wow...the bears finally show themselves. It is very clear they are trading this thing and when they resort to posting on message boards ....maybe they are having difficulty controlling the price. Regardless longs it is very clear stock is being held hostage it may take months for this to resolve itself and with no news it is the perfect opportunity for shorts to push down and cover and then go long if the company delivers.
This is a known fact. The move down in the price is in my opinion mostly caused by the traders who wrote all the options at 13 bucks. They are making out handsomely on manipulating the stock price and the implied volatility with the option market.
Dell. you need to wake up. short term this is going to feel some pressure. Momentum has changed. Protect yourself. Period. Stop pumping.
Might have a short term bottom and a bounce but in my opinion the bottom is still not in. Momentum favors 9.5 which will probably get hit assuming a bankruptcy in PREPA and overall market selloff. I bought some additional protection just in case. Nov 10 strike puts. GLTA
Market is at an inflection point IMHO so it will not matter. I am not bearish or bullish till the trend is established ....regarding MBI it can go lower. I am currently holding 50% in cash till the trend shows itself. Dell I dont understand your question on volume......there are constantly buyers and sellers....this is what promotes liquidity.
FYI folks the aim of the institutions using options strategies might be to gradually push the stock lower to 10.50 levels by August. Not go long the stock till the clarity with the outlook is better. Food for thought.
It doesnt mean that they cant force it down more....it will just take lower number of shares. One highly manipulated stock for sure.