RE:RE:RE:RE:RE:bearish indicatorsAurum,
Before the uptick rule was scrapped in Canada, shorts comprised on average less than 5% of all trades. For several years running, shorts have been 25 to 40% of all IVN trades. These are hard numbers, not generalized trading ideology. To claim that shorts don’t skew Canadian markets, is nothing less than willful ignorance. This creates serious problems for Canadian companies, where they are forced into high levels of share dilution by shorts, who continually machine gun share price in an illiquid low volume market. That’s why I normally steer clear of Canadian markets as if it were the plague. Why invest in a market that’s rigged for failure?
IVN is in a special position. Notwithstanding intensive short activity, all three IVN mega projects will certainly proceed into production. They will likely arrange debt financing through Chinese partners, to take advantage of rapid payback from high grade throughput. The same people shorting won’t get an opportunity to finance at cheap pricing, as they so often do. Investors just need to decide on their own buy in points. You can have more than one. Technical analysis works best over the short term. There is no law which states you must engage in pseudo statistical long term prognostications to divine the future. Investors can buy at a variety of prices over time, and realize a decent average price. Or if you’re a trader/investor like Rob, you can try to trade the short term trend as well as hold a core position.