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Are there 3 baskets of shorted stocks? #2

Open Arkeod opened 3 years ago

Arkeod commented 3 years ago

https://www.reddit.com/user/arkeod

Propose your question or request Hank has established that a basket of companies have been shorted about 2y ago (in 2019). I believe there are 2 or 3 waves of shorted companies, which might follow slightly different cycles:

My proposal would be to try to find smaller groups of shorted stocks and define if they follow different cycles.

Some might have been created as actual counter measures to the old brick and mortal ones.

In this way, we could understand which are the allies or the enemies of GME.

sudoshu commented 3 years ago

Hey Arkeod, thanks for submitting the question. I've talked it over with a few others and we are hoping you can provide a little more detail. The way the question is worded is quite vague and might be difficult to consume. If you can get specific and add more detail here we will re-visit it. Thanks again for the interest!

Arkeod commented 3 years ago

Fair enough. I think we agree that the great shorts started around 2019 with some stocks (like GME for example = group 1) Then Hedgies double down during the start of the pandemic (with the same stocks and maybe others too = groupe 1+2). And finally they started shorting new IPOs & SPACS/EVs (NIO, NKLA, PLTR, MVIS, etc. )= Group 3). My point would be to check if there is a difference of behaviour between these 3 types of shorted stocks. Because some of these stocks might have the same behaviour as GME and be bad for shorties (and thus good for us). But there might also be a group of stocks they are using to pump & dump to get back some money/liquidity. I believe stocks like GME/AMC/BBBY are probably from group 1.

Other solution would be to create 2 groups: older than 2020 and newer (so that would include new IPOs and SPACs).