Hi Lies&damnlies, Fair enough. Everyone has to have a strategy....

Hi Lies&damnlies,

Fair enough. Everyone has to have a strategy. For me TFC is more a buy on weakness and hold for the duration vs. a trading proposition, but the chart certainly shows it has volatility to trade the peaks and troughs.

The correlation between AUD:USD and TFC over a longer time period is not strong IMO:



... but I can see what you're talking about. TFC has more volatility but at times follows the AUD:USD with a lag.

If the shorters are doing so due to a perceived weakness in TFC's business model then I think that they are wrong and will be forced to cover at some point.

If, however, the shorting relates to a hedging of the $1.28 warrants then the process is more than 80% complete - i.e. 43m short shares vs. 54m warrants on issue. Once parties have covered their warrants then the demand vs. supply equilibrium will change and we may see a different chart pattern emerge.

Just my opinion and good luck with the trading. TFC will obviously also move as the market does and who knows what may happen now that the FED has both raised rates and provided a much more hawkish narrative than the market was anticipating.

Cheers
John