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Strategies & Market Trends : Tech Stock Options

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To: Gersh Avery who wrote (51601)	9/5/1998 1:55:00 PM
From: IceShark	Read Replies (3) of 58727

Gersh, No, I don't agree. Forced short covering due to loss of borrowable shares is very unusual, which is why most people have never heard of it. You will be very hard pressed to find many examples. Remember the sold shares are bought by someone and usually kept in the overall borrowable pool. Short covering by shorts that want to close out a position and take money off the table is a well known support for a falling stock which can cause a bounce, but that is not a forced action. Reduced long panic selling pressure and nibbling by dipsters who think everything is overdone is another cause of rebounds. Forced short covering due to loss of shares is a symptom of a bear/bull/MM war where the shorting gets way out of wack relative to the free float, which is usually small to begin with. There are some books out there that describe a few of the wars you might want to find. Sorry, I don't have any titles at hand. And, if you locate one, DON'T BUY IT FROM AMZN! -vbg- Regards, IS

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