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+--- Thread: What Does Decrease of SHORT Shares Portend?? (/showthread.php?tid=5930)
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RE: What Does Decrease of SHORT Shares Portend?? - jdeo1969 - 02-09-2014
If the interest rate is going up, that would indicate that there is more demand for shares to short. I am not sure how the technicals work, but large money could very easily work it down 2 bucks from shorting on light volume, then cover more shares at the lower price, which would still amount to a reduction of the short count overall. For the sake of an example, short 500 shares to knock down the price, then buy 1000 shares, thus reducing the short count by 500 shares. Could this be a way the shorts cover without a short squeeze? I have no technical analysis to provide, but I do believe they use shorting to lower the entry point be it for day trading, or for covering, or both.
Good luck longs
RE: What Does Decrease of SHORT Shares Portend?? - ebster123 - 02-09-2014
'jdeo1969' pid='37138' dateline='<a href="tel:1391883 Wrote:If the interest rate is going up, that would indicate that there is more demand for shares to short. I am not sure how the technicals work, but large money could very easily work it down 2 bucks from shorting on light volume, then cover more shares at the lower price, which would still amount to a reduction of the short count overall. For the sake of an example, short 500 shares to knock down the price, then buy 1000 shares, thus reducing the short count by 500 shares. Could this be a way the shorts cover without a short squeeze? I have no technical analysis to provide, but I do believe they use shorting to lower the entry point be it for day trading, or for covering, or both. Good luck longs
looking at economics Jdeo, it could be more demand to short but it could also mean less supply. Possibly some bigs are calling back shares or loaning less/none.
RE: What Does Decrease of SHORT Shares Portend?? - cybersssss - 02-09-2014
Why would they do that? Rhetorical question ebster.
RE: What Does Decrease of SHORT Shares Portend?? - ebster123 - 02-09-2014
If MH is working the mix he may have made some headway with the longs/bigs for impending news... Maybe why Chandler is buying again. I don't hold too much weight in him buying all next week. I suspect he will hold at a point just under 20%.
RE: What Does Decrease of SHORT Shares Portend?? - cybersssss - 02-09-2014
Agreed. Actually more big holders like Chandler make the available float much smaller and make the shares much more easy to manipulate.
RE: What Does Decrease of SHORT Shares Portend?? - jdeo1969 - 02-09-2014
True ebster. Thanks for the reply. I was only looking at it one way.
RE: What Does Decrease of SHORT Shares Portend?? - Putncalls - 02-09-2014
Some holding short positions may have taken their profits and gone looking for "greener pastures"