A large amount of shorts doesn't mean
That the stock is expected to go down...
It means the funds see a high degree of
Volatility...large swings....
You will also see in a black swan event..
Be it good or bad....the share price will overshoot...allowing the funds not to loose out.....like if a company has an unexpected
Profit ....The SP will rise well over what would Be expected ...before dropping back.
This allows funds to sell longs reset shorts
and make their margin of profit
Same if an unexpected bad result...only in that case the share price will fall further than is reasonable.
Buy good stocks like this one and be patient...
Cheers
SXY Price at posting:
25.5¢ Sentiment: Hold Disclosure: Held
