I would agree with you but look at the list of 799 stocks that can't be shorted. Neither RWT nor any of the other mortgage REITs are on that list. There was speculation on CNBC this morning that the shorts that have to get out of financial stocks will move to stocks such as the mortgage REITs just so they can short some stock related to the financial industry.
its not the 799 list but rather the ban on naked short selling, the end of the rope has been reached, no more ammo in the clip, oh and it is already short restricted, so the naked shorts out there get forced f@#$ed t+3. Their business needed to be a disaster for this to work, half of the float is sold short!! TRAPPED LIKE A RAT!!