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I know what you did last Wednesday (3/2/2021)

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Hello my fellow apes,

With BURSA releasing the Top Glove net shot position for Feb4, 8.59 am, I can now give a little cross examination of what the short sellers did on Feb 3 trading day.

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Net short position at the start and end of Feb 3 trading day. RSS 3 million but only a net short of 880,800 shares.

And there you have it. RSS volume 3,000,000 but only a net short of 880,800 shares.

The simplest explanation is the short seller have changed tactics. They are now buying and selling shares on the same day. A simple model indicates that short sellers sold 1.94 million shares and bought back 1.06 million shares last wednesday.

And why do this? Simple... I have no doubt the short sellers are selling when the price is high and buying back when the price is low. Using this method they are desperately trying to raise their cost average from RM5.7x to something higher price, a higher break even point that they can actually shock the market into fall towards. Short sellers still have the ability to short 84 million shares.

In January they have raised the cost average of their initial 106 million short from RM5.402 (Jan4) to RM5.7x but this was done by selling an additional 136 million shares at higher prices.

Well things have changed.

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So my fellow apes...

It is now more important than ever, DON'T chase high. Not only will your stock cost more, the short sellers are waiting there to sell high. They are no longer only short selling like a blind baboon .

Nevertheless, our hand remains strong. The short sellers have already sold 244 million shares (Feb 3). It is very hard to change the average price of such a large volume. A difficulty that is familiar to those among us who have experienced being trapped high and had to cost average down.

This little exercise of the short sellers has not changed the needle much, the estimated breakeven point rose from RM5.701 -> RM5.705. As a rule of the thumb, so long as we keep above RM6 the short sellers continue to drown in unrealized losses.

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As a reminder,

If you want to join this party, wait to buy during a dip, when the short sellers are selling and causing the price to fall. Go to your brokerage UI and find RSS volume or RSS+PSS+IDSS vol or shot selling volume. When RSS volume increases and share prices fall... the short sellers are selling.

Buy in small batches. You never know what better opportunities may appear in the future. Short sellers will continue to short. They can short another 84 million shares (if lenders are found). And their aim is to press TG to some stupid low price that would allow them them buy back the stock at the breakeven point or even steal a profit.

Should be a big on day 84 mil short, (like the 106 mil short on Jan4) be there and have the money to steal those ultra cheap shares when it happens.

Don't spend more money than you can afford to lose. Like all things set a budget. Set a limit of how much you are willing to spend on TG.

And HOLD. It is more important to be able to hold. And it is easier to hold a few shares and watch its price fall, than it is to have your life savings in TG shares and watch the same fall.

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PS:

It is NOT our goal to push up TG to RM8. But it is our goal to buy all the cheap shares that the short sellers want to sell and HOLD until the short sellers have to come to us to buy at RM8 or higher.

We all love bargains. Do not buy high. Short sellers want to sell. Let them sell.

Do NOT panic sell.

Do NOT panic buy.

Do NOT chase high