"They are selling stock they don't own and in essence driving...

"They are selling stock they don't own and in essence driving down the SP?" HJ.

That's naked shorting:

http://www.investopedia.com/terms/n/nakedshorting.asp


"How often have you experienced the theory proving fruitful?" HJ.

It is a telling rule of thumb used in conjunction with both fudamentals and/or technicals, eg. EPW's financials. Not in isolation.

"How often has it gone the opposite way, a large volume of shorters but the sp went up?"

http://www.investopedia.com/terms/s/shortsqueeze.asp

Your questions hint at a naivete in contrast to your handle "HedgeJumper," unless your moniker is derived from:



Either way, hope that frames my thoughts. Good Luck.

OV