Not quite follow. As a result of STX's inclusion in ASX200,...

Not quite follow. As a result of STX's inclusion in ASX200, let's say there is a requirement for various index funds to buy 100mn STX shares so their funds reflect the updated index composition. If half of the purchase is to be done via shortsellers, that means an additional 50mn shares will be short sold by the shortselling entities and purchased by the index funds.

So who is paying for the borrowing fees? Will the index funds be paying for the borrowing fees since they "commissioned" the shortsellers? If and when it comes time to square the ledgers and cover the short, who will wear the loss if STX share price is above the price when it was originally short sold? I can't imagine the shortsellers will want to want to wear the loss. So IMO, the only way this theory holds true is if there are actual willing shortsellers out there who genuinely believe STX is overvalued is betting on the price falling.

Anyway, I've started to buy back the trading position I'd recently sold again as the stock is now entering my buy range even though it is technically a bad sign that it has breached through the 61.8% retracement support level. That said, the day isn't over yet so the breach isn't confirmed




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