(Total Views: 654)
Posted On: 03/01/2021 12:24:01 AM
Post# of 154098
I think I agree with you, except for one point on:
No, a short-to-be would not borrow shares and hold them without shorting if he thought there was bad news coming out.
The short would want to beat the news by shorting before the anticipated bad news came out.
If he waited, he will short at a lower price costing himself the potential profit. Remember a short wants to short sell high and buy back low.
Thus, a short wants to short sell before the bad news is released.
That's why all these bashers on other CYDY stock boards don't make sense. If they truly believe bad news is coming out, they should be shorting now and waiting for the bad news and then bash to make it go down more.
Remember shorts want to short sell high, not low.
By the same token, if someone is truly borrowing shares, and holding them without currently short selling them, as you have suggested, that IMHO is truly a bullish sign because if they truly expected bad news, they would want to short sell now, not later.
(Again, not an expert, all IMHO).
Quote:
2) anticipating bad news
No, a short-to-be would not borrow shares and hold them without shorting if he thought there was bad news coming out.
The short would want to beat the news by shorting before the anticipated bad news came out.
If he waited, he will short at a lower price costing himself the potential profit. Remember a short wants to short sell high and buy back low.
Thus, a short wants to short sell before the bad news is released.
That's why all these bashers on other CYDY stock boards don't make sense. If they truly believe bad news is coming out, they should be shorting now and waiting for the bad news and then bash to make it go down more.
Remember shorts want to short sell high, not low.
By the same token, if someone is truly borrowing shares, and holding them without currently short selling them, as you have suggested, that IMHO is truly a bullish sign because if they truly expected bad news, they would want to short sell now, not later.
(Again, not an expert, all IMHO).
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