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Strategies & Market Trends : TA Science Projects & Experimental Indicators

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To: Spots who wrote (170)	6/5/1998 8:18:00 PM
From: ftth	Read Replies (1) of 237

Hi spots, I agree with your comments on short sales and how do we account for them. I made some passing comments about daily short numbers (or the lack thereof) and finding a proxy for open interest back in post #159. I think the main point of "...there can be no more buying" still holds though because a short is a sale, and covering it offsets the sale, bringing us back to parity. Initiating a short wouldn't ever make this overbought state increase (conceptually anyway). So it distorts our daily volume number if we try and reference this number to the number of shares in float, but it is a real trade, so we would want to count it in our A/D figure. Oh if we only had volume AND open interest for stocks. It doesn't really increase the share supply, does it? No new shares have been issued. No matching borrowed shares can be bought. The only possible purchase linked to these shares is the buy to cover, which brings us back to neutral. Agree? If I'm not addressing the heart of your question, please ask it again because I must have missed the point. If I did answer it, well.....cool! dh

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