Dips bait short sellers into doubling down, and also indicate high volatility due to low volume. The reason why the Volkswagen dip also matters is because of what Mark Cuban is talking about. This is why, even though the graph looks different, people are sure this corresponds to the Volkswagen dip just before lift off. THIS IS GOOD! When combined with the high buy vs sell ratio this indicates the true supply-demand equation (outside of manipulators) is tipping towards our favor. This indicates that the price is volatile because all the shares are being HELD. Friday, Thursday and Wednesday all had MASSIVELY more volume than yesterday. Please let me know if I'm missing something here.įor the first link, take a look at the 5 day chart and look at the bottom. So, what I'm saying is the VW dip that has been spread everywhere across this sub had nothing to do with the subsequent short squeeze. It quickly fell to a closing price of €508.84 the next day, and continued falling in the months following. As a result, the stock rocketed from its Friday closing price of €208.16 to a high of €978.92 on Tuesday, 10/28, a rise of 370% in 2 days. This is what triggered panic among short sellers due to the fact that this would reduce Volkswagen's public float to just 1%, while 12.8% of the stock was shorted. The short squeeze wasn't initiated until Sunday, 10/26, when Porsche unexpectedly announced that it effectively raised its stake in Volkswagen to 74% through call options. This was part of a broad market pullback in which the DAX 30 (German equivalent of the DOW) fell over 25% between 10/14 and 10/24, and several of the largest German companies such as SAP also fell over 50% like Volkswagen. Volkswagen went from a high of €421.18 on to a low of €198.72 on, a drop of 52.8%, but this had nothing to do with the short squeeze. I keep seeing people reference the dip that Volkswagen took before it squeezed, but I think that it's completely misleading. Hours respective to their own timezone.Read the FAQ if you're new to both wallstreetbets and trading. The rules and submission guidelines are maintained on new Reddit so be sure to check them and make sure you're up to date.
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