To short, someone borrows a stock from their broker and sells it on the market. Excess shorting, therefore, leads to a reduction in price as more stock is dumped on the market. However, if the shorters are wrong and the price rebounds, they all have to buy the stock to close their positions reversing the pressure and placing upwards pressure on the stock.
Essentially they add momentum to whichever way the stock is moving.
TB
EUC Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
