Cosco's action yesterday was too climatic and accordingly based on my analysis, it performed one of the most oldest tactic of a trading halt in the morning and gapped down on the second half in the afternoon. That's the by-product designed by the big operators! For those who were cajoled and hypnotized to buy on yesterday's breakout is now in a state of "cannot cut loss", and soon or later, they would be forced to liquidate their holdings if their trades are based on margin.
Today's trading halt served one purpose to the public who always confronted for the reason and has never received an answer:
Big Operators have virtually unlimited credit for emergency situations and equally important, access to as much borrowed stock as they many need. On occasions when the claims made on available supplies of stock are temporarily too great, trading is halt until big operators are able to locate more stock to borrow. So now you have the answer!
Today's borrowing of scripts is for shorting purposes and to curb the preponderance of public demand. The impasse reached by the public when the big operators are allowed to exploit the human nature and ignorance could not be more concisely summarized.
Ronald K
