The math The math of high short holdings /borrowings and higher than you might think institutional holdings is interesting there really isnt much left over that hasnt been accounted for once you add in the institutional which is north of 46 percent I read. and insiders and shorts nearing 8 per cent.
So there is a little in float not in hands of the above left for the retail longs. But there has to be a new source of buying based on News to trigger a short squeeze.
perhaps the math the shorts have used was responsible for the very severe dip ie short and distort way below book value.
It is best not to think well buy x time surely the short squeeze will happen. It wont until the improving fundamentals breathe confidence in the mkt and bring the retail investor back. Also window dressing in Dec and seasonality should help assuming fundamentals keep improving.
I dont like the math right now and it is easy for the shorts just to move the mkt downwards using their own shares. As someone on one of the boards picked up for the second option period for the US...ie 250 000 shares sold then 500 000 and then 1 million. This could of its own have triggered stop losses on the long side w/0 the longs selling.
So the math is a concern. NOthing has changed but the math for the shorts is such that it is in their profit interest and within their capablity to trigger a sell off with their own shares aided by the regular short and distort.
The float in retail longs unborrowed etc...is so thin it also makes it easy given the math for the shorts to move the mkt in the direction they want right now. This has very little to do with company fundamentals we will continue to trade in a super low range until there is sufficient interest with new buyers coming in..to help pry the shares from the shorts...It isnt a healthy situation right now and is imo independent of what the company is doing. The shorts are playing with the math after they scare off new interest. They are imo also nudging the share price down low enough they hope that even with postive stimulous they can try to control the upward movement as they did earlier in the year. It cant go on like this forever but it wil persist for much longer than one would think. It is unhealthy and a real deterrent for the retail investor. This is a sophisticated game . And it will take time to unwind. Dont know what the institutional level of holdings was for Tesla another case where there was an epic short squeeze. New blood is needed to get and to stay about .18.49. The fact the options now are weekly on the US board also has an impact on the short drag again imo.