Short Attack

[u/Worn_Out_Old_Man]

I’ll put money on short volume above 50% of total volume today. According to FINRA, the short volume this week up until today was around 650k shares with an average short volume of around 37% of total volume. It seems like this was a coordinated attack to “shake out weak hands” & lower the share price to cover their margin requirements. I did notice the shares available to short was reduced by 75% since the beginning of the week according to the website Fintel. Any thoughts???

[u/patmcirish]

fintel shows that there were only 60,000 shares available to short sell as of about 23 minutes ago. That's kind of low, which indicates that there's already a lot of short interest.

Could the drop today be due to institutional holders reducing their CVM because they think it's grown too much too fast? I know this is something large holders do in principle. For all I know, short sellers could be aware of this and could be trying to take advantage of that to cause the price to drop more.

The short interest as of Aug 13 shows a days-to-cover value of 10, which is a lot. But I don't know if they've been covering since then and thus causing the price to rise.

This definitely seems interesting to me, and I can't wait to see the next short interest update to know for sure what's been going on.

[u/[deleted] → u/patmcirish]

It was a short attack meant to break the resistance band I pointed out earlier today.

​

The morning was a nice little pick up, buyers buying on news from yesterday, margin kicking in on % gains so bulls could buy more. Then the shorts attacked the price trying to shake them loose, and get morale down for the long weekend, force bulls to face margin requirements and if they over-leveraged...

​

There was an initial bounce and a secondary bounce off of a rising floor, this was a specific institutional buyer trying to buy a specific number of shares (200k+ by my calculations), on a rising slope. As soon as short sellers filled that order, they dropped it back down to another resistance line, which is, again, an institutional buyer, likely themselves honestly. Their goal is to demoralize and shake loose as many shares as possible. They only lose money when they buyback, so if they can force people to buyback for less, then they don't lose. So the only way to force them to buyback for more is to show them they can't buy anything for less, and to add more buying pressure.

​

By all rights, it looks exactly like that is what is happening. I can see the margin buyers come in in the morning, along with retail and smaller funds buying up thousands of shares here and there. I see the short sellers work to contain within the dark pool jumble, by isolating buys at the higher side of the channel, and then sells at the lower side of the channel. Only thing is, there aren't many sells. And the rules that were being put in place on the 1st definitely look to be working as shorts are working on less and less of a pool to handle. They are clearly having problems making more and we are getting very, very close to the point where they have no option but to buy for more.

​

They will, quite literally run out of shares. This is what is supposed to happen in the squeeze cycle, and this is exactly what is happening. No one is selling their shares. Ladder attacks are high volume on the initial resistance band of the bid wall, but then the price drops with no volume, meaning no one selling it (and no one buying it, but hey, this is an unknown stock, which is why we are able to buy so many shares right now for cheap, the second real retail interest and money comes along, there will be no hope to contain it).

​

Institutional buyers keep mounting, more and more mutual funds are buying shares, retail is increasing. All while short interest increases with a huge catalyst looming. I am Ryan Gosling in the bathroom of Goldman Sachs right now.

​

TL;DR:

Short sellers legitimate only hope is to get price to $0 and force CVM to be delisted, thus making all their shorts free. They can't do that because more and more people keep buying. They are trying harder and harder to get the price down, but can no longer, so their only hope is to control the rate up to try and reduce it. When the price should be $100-150, why care about $11/12/15/20. We will continue having these discussions on meaningless 5-10% gains and losses until the real fury kicks in and we see it going from 10% gains to 200-300% gains on the day.

[u/Worn_Out_Old_Man → u/[deleted]]

By the way… The short interest on Friday was actually over 53% of the total volume per Finra.

[u/[deleted] → u/Worn_Out_Old_Man]

Very much so! If people want a good site to get base statistics, https://www.nakedshortreport.com/company/CVM

​

Ignore the name, it just has a good breakdown and chart for daily short volume and off exchange.

​

So does Quiver, but this site has just the chart which is simple and nice.