RE: Shorts on CINE Reduced22 Jul 2022 15:53
It looks like the shorts are in a dilemma right now. General sentiment seems to be positive atm. Analysts are expecting between 25 to 50 bps interest rake hike from the feds. Meanwhile earnings season is showing cinema is one of the few markets who kept their revenue intact despite the inflationary changes.
This puts upward pressure to price. Shorts can usually just short more to put more downward pressure (Bill Hwang did the opposite version). But it can only go so far. Any short interest rate hike will affect all the shorts, not just theirs. We saw the spike of short borrowing rates on 15/jul.
Here's the interesting parts, some shorts came to the party late. They will have shorted at around or lower than the current price (enhalus), they can either double down and hurt everyone else through the short interest, or close and hurt everyone with the price increase.
Interesting times. Pun intended. Let me grab the popcorn.