Index prices if all shorts were covered

Alien

Junior member
11 0
Can anyone tell me how to find out or calculate or estimate what the price of each major index would be if all accounts were settled, i.e. if all shorts were covered?
 

Alien

Junior member
11 0
It seems not! Pity. That value and its ratio with actual price might be useful values to monitor.
 

spoon102

Member
60 0
Dont really understand what you mean. For each trade you take another person will take the other side. If your short somebody else will be long.
 

Alien

Junior member
11 0
Spoon102,

Shorts provide support because a proportion of shorters take profit by covering (buying) at every dip. A proportion also cover in panic at every rally. The curent level of shorting is providing massive support to equity markets which will only be able to decline significantly when those shorts are covered. A blow-out rally would do that. I would like to be able to estimate what price each index would rise to if a short-covering blow-out rally occurred. At that point the market would be massively over-priced and under-supported and susceptible to a sharp correction or mini-crash which is precisely what happened in 1987.
 
 
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