And these short sellers pile up on top of each other with their biased opinions," Capablanca said.
But because of the increased number of short sellers, a stock can blow past that and remain elevated over multiple days.
So even if the market seems dead, nothing is there to trade, they will force a trade," Capablanca said.
This rule helped him avoid Vivos Therapeutics (VVOS), a stock that many short sellers he knew tried to short.
Such an outcome could lead to a continued elevated price, driving short sellers out for weeks, he said.
Persons:
David Capablanca, lockdowns, Capablanca, it's, POL
Organizations:
Capablanca, Guardian, Yahoo, Traders, Therapeutics, Yahoo Finance, shorting C4 Therapeutics