RE:RE:RE:RE:Everyone covering ?His point was that every share sold short has to be covered. In the long run it has no net effect. My point was that moves in short interest tends to accumulate in times of changing sentiment which renders the long run somewhat irrelevant. In the short run we see a herd mentality where particular stock gets hammered by shorts and then sentiment shifts and it triggers a period of covering. Volatility is the primary effect.
PolicYenforcer wrote: So let's get this straight..... Shorting does not affect the price whatsoever? but covering does?
And you call people here amateurs?
So explain then, a million shares are shorted in one day, the price does not increase, the plhucking shares plummet.....they are SOLD INTO THE offer not the BID? Meaning that everytime the group is SOLD/SHORTED the bid obviosuly drops not increases so that is totally false..... It works both ways and inmany instances the bid drops significantly in a short period. That is what causes SP's to drop so fast..... Before someone here claims to be a stock expert and they insult everyone with their knowledge they should brush up on their information I think.