Massive Short Volume, Proves Correct
Short-side volume was the key.
The August 13th, update linked here, identified unprecedented volume posting on the short side.
It’s also interesting to note in the very same report, there’s a link to ‘bears capitulate’.
If there was actually some value to the financial press, this would be it; help provide contrary indicators.
So, here we are just over a month later and biotech SPBIO, appears to be in free fall.
Biotech SPBIO ($SPSIBI), Weekly Close
The prior update had this so say about positioning (not advice, not a recommendation):
“Figuratively speaking, everything’s been dropped to focus exclusively on this sector. It’s obvious, what’s going on at this juncture is unprecedented.”
From that August 13th update, the main account for my firm has increased the size of its short position (LABD-22-05), by approximately 34% (not advice, not a recommendation).
Unprecedented short-volume, points expectations to some kind of unprecedented bad news.
When the market goes south, bad news comes out.
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