when it rains it ..., page-31

The short sellers best friend is actually a LT holder whom is happy to lend them shares for a price really isn't it?

The fact that these LT holders do not see value in selling on the market now and are not scared by the prospects of their investment falling in value in the ST is required for the shares to be provided to the short seller in the first place..

In the marketplace they need to create uncertainty.

There is always demand at lower prices, that is a given in economics.

SO you feed that demand stripping it away layer by layer until you, the short seller, eventually become that demand to give your shares back to the owner.

That is the game.

And in the meantime you hope like hell that information does not come to light that allows the buyers in the marketplace a reason to value the share higher than it is currently AND seller a reason to hold out for higher prices.

These conditions shift the equilibrium price for the share to a higher point and, as a short seller, reduce your profit as the market moves against you.

SO given that sellers are almost out at this price level and buyers have not found a reason / information to move their price assessment up yet (besides them not being able to get what they want and having to pay more) then the last party is the short sellers.

Do they create supply (and try and get holders to follow suit fearing lower prices) or close their position?

As they must give back the shares their position is too precarious to do nothing.

A share holder can do nothing and have the market move where it will only winning or losing when they sell, the short seller does not have that luxury because they do not own the shares they have sold.

SO this will be an interesting day.