I have a vague recollection from a long ago post o
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I do believe the market maker, who can legally do naked shorting, may well do so if he/she finds themselves short of shares and may need to load up on the strength of heavyweight short term pressure which can encourage some profit taking…it doesn’t take much when volume lightens up for that to work. I think naked shorting should be illegal, none-the-less the outstanding fails to deliver pale in comparison to the short volumes we have witnessed.
I am a long term investor and generally do not obsess about it and prefer to engage on the science and truly market moving news but it would be useful to know if someone has insight into the question on these trading dynamics. My investing maxim has always been true value always comes out in the end but this dynamic does tweak my curiosity.
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