MARKET INDEX TECHNICAL ANALYSIS - MITA Message Board

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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA

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To: lifeisgood who wrote (15587)	12/15/2002 2:03:43 PM
From: Dominick	Read Replies (1) of 19219

My understanding about the difference between retail and MM shorting is that with retail, the broker must first find the shares for you to short. I have seen on numerous occasions with other traders, brokers saying they could not get the shares. The above is not a problem with MM's, because they make the market for that particular stock. My best guess with your IPO 5 million float/50 million traded example, is that traders and institutions were scalping during the day. Thus running up the volume. What I'm not clear on is can a MM short more than the float? How could he justify covering 50 million shares if there's only 5 million? I don't believe he ever has to short more than the float. If the MM want's shares, he has the capital to shake-out the weak holders. Just an uneducated opinion, Dominick

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