RE: PDLOn the American side yesterday was a major key reversal. We hit a low on heavy volume early - something down in the $5.25 range, and then rebounded throughout the day closing fairly close to the high. The tape was 'painted' on the last trade or so to show a once cent loss.
Not calling a bottom but TA folks would say this probably marked a mid term bottom at least. We could retest of course but everyone who has been paniced was propbably out by 10:30 a.m. or yesterday.
Nice steady movement today on modest volume. This is what you would expect to see from a stock that is going to move higher.
Same story for the pm's yesterday. All the speculative weak long futures stops got creamed. Today, nice rebound throughout the day.
One problem for those of us who also hold options (June $5 and $7.50 for me), especially the April calls is the huge imbalance. There are something like 20,000 calls and maybe 1,500 puts. If the price is held under $6 or so by April option expiration most if not all those calls will expire worthless. Given the size of the imbalance the incentive is for the specialist and call sellers to do everything possible to hold the price down until after expiration. This is what happened to the March huge call imbalance - wiped out.