r/nio
Short Volume reached 141 million shares on good news.
NIO short volume rose by 3M to 141M despite good news; author claims this proves short sellers are artificially suppressing the stock.
- The company released positive fundamental news.
- The stock price is allegedly being artificially suppressed by short sellers, creating a disconnect from its true value.
- Short volume surged by 3 million shares in a single day.
- Total short volume reached a massive 141 million shares, indicating heavy bearish pressure.
3 million short float increase in a day to 141 million from 138 million. That too on good news.
Proof of short sellers artificially forcing stock price to be lower.
This "proof" of "artificial forcing" is just not true. That's now how things work.
Sigh.
Anyways, XPEV is down too. As is a slew of Chinese companies. That's part and parcel of buying a Chinese ADR, as they are entangled in ways that other companies are not.
Now, even if we get a short squeeze, it's not "artificially forcing" anything. The people on the other side of the trade doesn't want to lose money. The market makers have to remain delta neutral. So putting in a human narrative that doesn't exist, or a market narrative that doesn't exist may be comforting to some investors, but just doesn't reflect reality.
In the end, if you believe in the company and its finances, the price would eventually react. But there are very real risks to investing in Chinese companies as an outsider.
You poor thing. Your delusion is on another level. The reason short volume increases is so that people can sell those shares to lower the stock price, and then buy the much lower share price and profit the difference. The word short squeeze exists because when these shares bought with the agenda to lower the price face a growing stock price. resulting in the shorts covering by being forced to buy more.
Explaining basics of short selling doesn't explain the "artificial forcing" issue I was saying doesn't exist.
It's not artificial, just folks making investing decisions.
lol short selling means the person who owns the shares lends them to a short who then bets and profits the difference. By default that person's interest is to keep the price lower. The best argument you could make is not all short sellers are malicious.
Where do you get the LIVE short data ? Can u pls let me know