On April 13th RVX was trading over $3 per share, volumes were typically serveral hundred thousand. Not huge trading but certainly higher than more recent norms. And short interest was reported at around 80,000 up to the end of March.

So buyers stormed in and pushed the PPS higher....that's pretty clear. But then short interest more than doubled going over 200,000 up to April 15th and the PPS started retreating.

There are two possibilities as I see it....

1) Bearish players saw RVX as overvalued and sought to profit from a drop.

2) Bullish accumulators pushed the PPS down by stoping their accumulation and going short to push the PPS lower in order to shake out nervous and price sensitive retail holders.

I'm firmly of the opinion that scenario #2 is what we're witnessing here. The reason we're moving up now? I believe those who've been accumulating, using short selling to manipulate the PPS and shake out the weak hands, that they're now covering off (filling the gap) and will be back to accumulating and pushing us north of $3 in the days and weeks to come.

Its called price volume movements....and ultimately its all tea leaves, speculation in other words. That's as it has to be. If I'm right those behind the action aren't going to suddenly annouce....

"Okay guys, that's enough....we're going short now".

Why cover now and start accumulating again? My suspicion is that with the exposure RVX is going to be getting in June, that those accumulating are soon going to have new competition and shares are going to start gettting more and more expensive due to increased demand.