Shorting is clearly not allowed in stocks like AQR...
Yet why do I get the feeling...at the end of most days of the recent rally...that short covering is taking place?
Whilst, strictly speaking "shorting" may not be allowed...it would not be hard to say sell 100,000 units at 2:00pm...then buy 100,000 units back again at 3:00pm...with the view of course of doing so cheaper.
the books remain balanced...and all the ASX gets at the end of the day is a buy contract note and sell contract note pushed through the system.
The problem with AQR however is that the usual games to cap the stock and lead a sell-off intra-day, just never seem to work. Several times today we saw somewhat aggressive efforts to push the stock down...but each time the moves generated were minimal...certainly not enough to justify the effort, nor the risk.
The way the stock reacts to these sorts of intra-day efforts, in my view, is extremely bullish, indicating a significant net buying is underpinning the rise in AQR.
The last stand sell-off towards the close today...which was probably the most concerted effort to run the price down...did little more than flush out large buyers from everywhere.
This has been typical of this run...and I suspect many have probably over-traded this, missing points along the way...at times it is better to sit and do nothing and make better returns.
I think most looking on here would admit this is not your usual trader induced activity...certainly not for a stock that has risen so far so fast.
It makes one wonder if there is more to it...and what the impeding results will reveal?
Cheers!
AQR Price at posting:
47.5¢ Sentiment: Buy Disclosure: Held
