Tuesday, 14 October 2014

Quindell approaching oversold

Quindell (QPP:LON) put out a 'good' trading update yesterday and the shares fell 7%. They fell another 7% today. My new short is doing well. They closed tonight at 134p. It is possible they could drop to 125p in line with the tramline movement, but if they get there quickly, an RSI oversold condition will obtain. This may well cause a bounce back to 150p.

I think they will keep doing this until they hit the long term and psychological support of 100p




In the meantime, I understand that GCR have been tweeting negative remarks again about Quindell. Perhaps this has caused the price drop. I do wonder whether long-term institutional investors are eschewing this instrument (other than to sell it), which means that the whole market is driven by (retail?) traders. Certainly the volume has dropped right off.




So to summarise, I am holding short again, from that bounce to 165p the other day. I do recommend you set fairly wide stops if short, as the share seems to bounce first thing every morning, before fading all day.
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7 comments:

  1. Anonymous14 October 2014 at 20:57

    Hi Dave. Not only more lies and scaremongering tweets from GCR but also coordinated increased short positions from Coatue on the 10th (day before results) and from Ennismore on the 13th ( day of results. All an attempt to quell the SP and sentiment which based on the volume and SP drop they have achieved. The SP is now so manipulated and away from fundamentals it is criminal - quite literally. SS.

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    1. Anonymous14 October 2014 at 21:34

      SS you are spot on. This is market abuse and the authorities cannot continue to turn a blind eye. One big event could and is likely to turn this on its head

      Delete
  2. Anonymous15 October 2014 at 08:27

    Why no action from FCA etc???

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  3. Mike15 October 2014 at 16:18

    Good post David, nice detail. It sucks to see this happening to be honest. Glad you making money though. I am long in QPP, down by thousands, but I am not selling in any hurry, hoping it will turn some day and head North. On the side I am short spread betting too, to recoup some of the paper losses. Its crazy that it is possible to do this, but if the markets allow it then so be it.

    As for the other comments, what really is the FCA going to do? Is anyone really doing anything illegal? Loads of people have sent letters to them and no response, nothing! They don't care, hence why they are not doing anything about it. So my advice is to do what David is doing. Take a short position while you can, make some money, be careful with your stops, and hope that it turns one day.

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    1. David Atherton16 October 2014 at 00:17

      Thanks Mike, is it any co-incidence that the most sensible poster is not anonymous. These allegations are a binary, they are either true or not true. If not, happy days and QPP will return to six quid. But in the meantime, it's volatile, and volatility is the friend of the trader/spreadbetter (or is it bettor, IG/Spreadex being the bettee).

      I have made >£10k betting it down and up. I hope you do likewise. Meantime, as I said in my post, any share is ok if you take a really longterm view.

      Delete
    2. Anonymous7 November 2014 at 20:11

      Hi David,

      Just wondered what your background was. What you say re: QPP seems to make sense and your predictions generally bear fruit, as opposed to other twitter users who seem to delight in seeing PIs lose money (which I struggle to get my head around. Anyway, was just curious.

      @rormis

      Delete
    3. David Atherton9 November 2014 at 00:38

      See my profile https://www.linkedin.com/profile/view?id=204639

      I only started trading/investing in 2012

      Delete

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