RE: Good dayYes, there could be a rally over the next two weeks (size and duration are unknown) for the following reasons:
- Short sellers will likely cover unless they want to be short the spinout too (this won't stop some people, however, and regulatory enforcement is lax to say the least). Given that this will occur at month end/qtr end, I'd guess most traders will opt to be flat.
- Some will see the current dip as a buying opportunity with a possible added bonus. If a trader was to play his cards right, he could get long a whole bunch of CAN stock in this price range knowing that much of the downside risk has already been removed (just a guess) then sell some/all of the CAN shares out following the spin off hopefully at a price >= to his cost and get free Tigray shares in return.
- The TSXV (in addition to other indices) has already had a 20%+ correction. I, for one, wouldn't short gold miners at these levels. A few days ago (while in Vanc), analysts like J Kaiser were talking about the current pullback being a great buying opportunity.
- Some also see opportunities in Africa:
https://www.theglobeandmail.com/globe-investor/markets/markets-blog/soros-out-of-china/article2060157/