Hi all, any theories on this one? For about 2 months nett shorts have been plummeting from their peak on the 11/3 of about 82.78M through to last figures 6/5 of 54.48M. That's 28.3M of short covering and puts the total short positions at the lowest for almost a year (26/6/19) when price was at $1.265. Initially the short covering appears to have assisted price jump from bottom to last top of about 33.5% - which makes some sense given the rate of covering. However despite nett shorts continuing to plummet, price now sits back at about where the covering started- you would think price would be getting a bit more assistance than this?
So why all of a sudden the reduction in short positions? Potentially a fund or prime broker calling back it's loaned shares? Just throwing it out there because I don't know the details of how it works. And if so why would they do that- is there some tax selling/position changes coming? That would not be good. Someone with better understanding might be able to suggest what's going on here, and apologies for the negative suggestions but in my short time in the market I don't think I've seen such continued short covering at such a rate without a corresponding and meaningful kick to the share price, so I hope it's just me jumping at shadows...
GXY Price at posting:
78.5¢ Sentiment: None Disclosure: Not Held
