Thursday, July 17, 2008

Short Selling and Market Behaviors

Short selling can drive the stock price sharply low, but it also work as a support force when the short covers. From this point of view, the short selling might make a stock more volatile.

XLF



I wonder what happens when a stock doesn't have the support force from either inside buying or short covering with poor general conditions. It might just keep drifting down.

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