Replies to post #272948 on Fannie Mae-No Politics (FNMA)

[IL Padrino]

Interesting.

[jackticker]

Sorry but when shorts sell (cover) the price goes up. What's happening is MM's walking down in AM and then shorts covering rest of day slowly walking back up. This will be the pattern until large short positions are completely covered.....then release baby.

Really there is no selling with short positions. They barrow shares and then buy to cover. Borrowing sends price down and covering brings price up.

You have the right idea but opposite of your theory....but still bullish IMO.