JG,
I'm still getting my head around how all this works.
Off Market
Dark Pools
???
Also, after reading some of the stuff on the ASIC website, they had some trouble a year or so ago with "netting off" of short positions.
They have since changed the reporting rules to stop this.
Strategies....
So they could be short in one account/fund & long in another (but this cannot be netted off now), so once the shorting campaign has reached it's conclusion, maybe the long fund (which I guess has been accumulating during the shorting campaign) then transfer's stock across to cover the short.
If they have done this right, they would have accumulated much more long stock than they need to cover the short position, then they would be almost ready to do some "testing of supply" and begin marking it up.
If there is not much demand in a stock it doesn't appear to require much shorting/selling pressure to push it down, so another way would be to sell it down and shakeout holders (pushing it through potential support, catching stops etc.)and coservatively cover the short position as you go, while accumulating in another fund/account, this way the short position never become too large, but doing it over and over (if demand remains low) keeps pushing the stock lower. Making some profit on the way down through shorting and accumulating at the same time, at much lower prices, ready to take it up again in the future.
?????
Don't exactly know how these things work, just thinking out loud, and watching a number of stock's to see what happens as things develop.
your thoughts ???
cheers
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