Trend Strength and Short Interest Ratio
Posted: Sat Jul 24, 2004 5:43 am
Recently, I got interested in the Short Interest (SI) and how to interpret and exploit it. On EliteTrader, I found an interesting article on how to profit from short squeezes: http://www.elitetrader.com/tr/index.cfm?s=15&t=69
The author lists some impressive examples of rising stock prices despite rising short interest. Obviously, these must be strong stocks that overcome short selling pressure.
Another source of ideas is here: http://www.erlangersqueezeplay.com/page/esp/
Would like to hear from anybody how to use SI for finding stock candidates or build a trend strength indicator. Any ideas?
Best,
Ted
The author lists some impressive examples of rising stock prices despite rising short interest. Obviously, these must be strong stocks that overcome short selling pressure.
Another source of ideas is here: http://www.erlangersqueezeplay.com/page/esp/
Would like to hear from anybody how to use SI for finding stock candidates or build a trend strength indicator. Any ideas?
Best,
Ted