The key factor when it comes to all day faders is and will always be ITM dilution. Keep in mind that this is always relative to the stock's volume. 5M dilution means nothing if volume is 100M.
That's where ppl fuck up b/c they look at supply but ignore demand
#BearTipOfTheDay
That's where ppl fuck up b/c they look at supply but ignore demand
#BearTipOfTheDay
If there is no dilution, then most of the selling will obviously come from bagholders and profit takers. The more overhead resistance (from previous big volume days, followed by VERY low volume days), the more bagholders. And the more extended the stock is, the more profit takers
Dont count on shortsellers to provide most of ur supply. In fact most of the best faders ive seen, tracked & traded had the LEAST amount of shorts on that day. The more shorts involved, the more covers on the way down. slows down the descent. leads to cunty/choppy fades.
