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Strategies & Market Trends : Guidance and Visibility

AAPL 272.55

-0.1%

Nov 14 9:30 AM EST

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To: SpinCity1 who wrote (17675)	9/21/2001 4:03:58 PM
From: Wes Stevens	Read Replies (2) of 208838

You are right in that each share that is shorted increases the float. I tried to explain that once on another thread. It did not come across. But I disagree that it is destructive. The market reacts to the economy. If a stock has good earnings the price will only go down so far no matter how may shorts pile on. When it turns around they have to cover. The market always over corrects. It is probably at that point now. The shorts probably help the overcorrection. But in the long run they keep the market orderly. The stock price of a company - shorts and all - is just a refection of it's earning capabilities.

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