RE:RE:RE:RE:RE:RE:SHORTS ARE CRASHING THIS STOCKWynjoe wrote: How low do you think shorts can take this,I'm relying on your answer and yours alone.Thank you.
Great question...
Frankly, I don't have an answer as to a specific price.
As long as there is heavy volume on the downside it suggests that more shorts are "piling on" and the SP will continue to fall. When you see intraday a gap down and then a reversal on the upside with heavy volume then the short party is over and it is time to buy back in. This is what I will be watching for.
In short, you need to monitor the stock daily and wait for the shorts to tell you. There really isn't a way to determine a priori at what price they will cover their shorts. Given that the company just went x dividend, the shorts don't need to worry about covering the dividend for another 3 months and so that math isn't a worry to them. IMO, the only real worry to them would be a spike in oil prices in which case they would reverse positions very quickly. So I guess, in absence of any developments leading to a spike in oil prices, the short party could last quite a while.
While not necessarily reliable, traditionally shorts tend to base decisions not on fundamentals but on technical indicators. From technical point of view, looking at the charts, there seems to be support for the SP in the 39-40 range so this could be a price to look at in terms of what they are doing, but as I said above, it is really difficult to anticipate what they might do.
Not sure if any of this helps...