The Trouble with Shorting Stocks

By Paul Kedrosky · June 4, 2007 · ·

While short-sellers abandoning the market usually signals an approaching top, there are two interesting pieces over at CBS Marketwatch that argue structural changes in the short-selling market — including a 2.5-fold increase in the amount of capital devoted to short-selling — are changing the business dramatically.

  1. More equity hedge funds turns to shorting ETFs
  2. A new kind of short squeeze

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