Shorters are back, page-205

To update the short situation, there has been a reduction in the outstanding shorts on 11/11 (about 4m on a 26m share turnover day). More time will need to pass to see if this has been sustained. Still a substantial number outstanding.

There has been around 66m shares turned over since then and using the similar proportion of buy backs (15%) that would suggest around 10m shares reduced since this report.

Zip Co (ASX:ZIP) - Short Interest - StockTrack



The daily reports showing how many have been shorted on a daily basis since then is around 1.7m shares.




Therefore the total estimated outstanding at this point in time is likely to be around 45m shares. That is still a substantial amount based upon the average number of shares turned over daily.

As I pointed out, there is a paradigm shift occurring at present. The reduced numbers of shorts from the 11/11 shows that the shorts are starting to see this also. The last spike in July was signalled by a substantial reduction in short positions on the 14/7 (-7m).

I would suggest that the shorts are turning into buyers - will this sustain or will there be a massive number of shorts again once this next run is over?

Consider that the number of short has been quite massive since this started dropping from the $5.00 level or maybe higher. The average price difference was quite substantial around May this year.

Since then a lot of short positions have been churned and therefore the difference between the average entry price and current price is a lot closer. As such the 'burn factor' of a rise is going to be increased substantially of those remaining in short positions. If you can't see the change about to take place then I wish you all the best.