Re:Tesla Faces U.S. Criminal Probe Over Musk Statements
by rootusrootus on Tuesday September 18, 2018 @01:01PM
(#18016985)
Not individually, but if enough people short it, then that becomes a signal to other investors that maybe there's something they don't know about, which will push the price down.
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Re:Tesla Faces U.S. Criminal Probe Over Musk Statements
by lamontcg on Tuesday September 18, 2018 @02:07PM
(#18017677)
And other investors see that short interest piling into an otherwise healthy (hypothetical) stock and they buy in anticipation of a short squeeze. And when the stock pops due to good news, those shorts become rocket fuel for the stock going up.
No single action in the stock market happens in a vacuum, and longs will absolutely react to what the shorts are doing. And a high short interest is often viewed as a contrarian indicator that dumb short money has piled into the stock and that its actually due for a pop. You often see that at bottoms in the stock.