Morgans senior analyst, Adrian's report on SXY and COE, page-32

cyc838, the price of sxy may somewhat manipulated by short selling but the price of sxy is controlled by company fundamentals and the markets perceived acceptance of risk toward those fundamentals. Take a look at coe for example, they have had a larger percentage of their stock shorted for quite a while and do u see the fluctuations in their price....nothing like it!! You can jump in and out as much as you like but your only contributing to the problem your complaining about.