Metanor Resources MEAOD

RE: Volume Spike/yahoo board

[tictactoe111]

18-Aug-11 03:16 pm

~ Volume spike in @ 900K so far

~ Minor backtest

~ Newsflow - leading to:

~ First spike in stockprice

~ Last of the frustrated weak longs to exit stock creating:

~ Backtest

~ BOOM

With the obvious caveat of market conditions the above is how I see it playing out.

18-Aug-11 04:54 pm

The hedgies started the initial unwinding of their shorts today under the cover of high volatility and distraction in the market place. This was expected because on no account do the want the stock to spike and draw attention to the undervaluation, much better to slip away when the opportunity presents itself and no one is looking. Very few would have even noticed or cared what Metanor traded like today when so much else is happening.

Metanor would have likely fallen today with the rest of the sector if it was a normal situation but it is quite unique with the captive shorts so expect more covering, especially when the market is puking up anything paper.

The spike normally comes when they feel as though they have been rumbled and they look to close out asap, often newsflow being a catalyst. The momentum of the final short cover alongside entering longs will probably give Metanor a two trading day gain of around 40%-50%. At this point many frustrated longs will exit feeling very relieved, especially when they see a 10% down day following the spike - "see, I told you it would fall back, it always does" they will say - but will be sickened imho to see what happens after that as the stock will likely rhinohorn.