To me, if there is a big volume of shorts, it's because ....
1. The shorters are aware of bad news coming and therefore know that they could buy back at the lower price when the news hit... OR
2. They can see the market turning around and are preparing to get out, hence they need to cap the SP lower so they can buy back their shares. Most of this is achieved by scaring the mums and dads and or by triggering stop losses.
Now we know that MTS has virtually bottomed and we don't expect any more bad news (I think or close to it) and with all these Chinese whispers, only positive news would be in the pipeline. My guess, No 2.
Now as long as we hold our nerves and not sell out to the shorters for their covering, I can see the SP recovering.
KKW
MTS Price at posting:
$1.17 Sentiment: Buy Disclosure: Held
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