RE:OK.....Soooo where are we now?Fantome wrote: 1.....The stock action over the last couple of days suggests that some shorts have covered and have gone elsewhere...the numbers in the next couple of weeks will confirm whether this happened or not.
2......my feeling is that that not all the shorts have left
3.....the reason I feel this way is back to some points i made in earlier posts.....the VET SP currently is trading at a premium to most other E&P companies so from that point of view it is still overpriced....if that was all there was to it then the SP would be around 20% or more lower than it is now.....so it seems the debate is
a....should VET have a premium or not
b...if so ..then how much of a premium
I don't believe the market has made a deterimination on this question and this why i believe there are still a lot of shorts hanging around
4....It is this sense of indecision by the market that is why i haven't as yet taken a full position in VET....I would really like to but with this cloud overhanging the SP it is difficult for me to pull the trigger...if the SP went to say 18-19 I would not hesitate to take a larger position....on the otherhand if the price stabilizes where it is now with good market dynamics...smooth price action and decent volume then i would also become more confortable with adding to my position
What about the current price action over the past couple of days?
1... the rebound in prices before todsy is quite normal and to be expected
2.. the decline in pricer today in my opinion would also be expected and was helped by a lower WTI price
Sooo..the bottom line is that there is nothing that is unusual or surprising...BUT...at the same doesn't really tell us anything new as i alluded to above...
Sooo ...what is the bottom line?
Stay tuned for Season 2.
Right how nobody knows who dunnit...lol
Sooooooooooooo...Fantome................ what does it mean to anyone that "not all the shorts have left". Do they still have control because they expect more downside??? (How could there be!? ooch...ouch). Or ... the ones that have covered may wait for the sp to increase and attack again?? Just wondering.