In the absence of any real news coming directly from the company, the simple truth is that the share price is in the hands of those with the ability to push the price significantly in either direction. I am not counting on PPT anymore than the shorters would be counting on them to stop accumulating. Just merely making sense of it all.
Whether shorters have an advantage is an interesting debate. My view is that if you believe sentiment, regardless of its driver, can move a market then there is definitely an advantage. Is this an unfair advantage? No its not, the same thing can happen on the long side if a large fund starts accumulating (although you won't see shorters complaining).
Having a large short position in a stock can create opportunity, especially if you believe in a company's future prospects. Would I have been able to buy at the current share price if there hadn't been over 100m shares in Myer sold short? Probably not.
MYR Price at posting:
$1.32 Sentiment: Buy Disclosure: Held
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