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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: eims2000 who wrote (4593)	6/26/1999 12:01:00 PM
From: LPS5	Read Replies (1) \| Respond to of 4969

Hi Rhansen, Look in this week's Barron's on pages MW54 to MW58. There, they will have the open (uncovered) short positions of issues on the NYSE, AMEX, and NASDAQ. In addition, there's usually a synopsis of the greatest increases and decreases, as well as "newcomers" to the top ten or twenty list. With regard to a "short interest [effect] ratio," I was suggesting that the enterprising investor or trader (read: aggressive, loves to do homework, etc.) might want to find out (probably with regard to a firm that'd recently suffered a deserved or undeserved drubbing): a) how many shares of some miscellaneous firm are outstanding; b) how many are currently sold short; c) how many have been sold short since the hammering started; ...and basically, look for the interplay between volume, price, relative volatility (gaps, % intraday moves, etc.) and the % of shares sold short. In other words, look at the places on a chart (hard to do since short interest is tabulated weekly, but a straight-line estimate might be okay) where the short interest changed and the price responded in some way. In this way, one might be able to determine roughly where the squeezes occur, and might occur in the future. They could then say, "Hmmmm. When XYZ Corp. has more then (some arbitrary %) of its' total outstanding shares in open short positions, the price responds affirmatively within (some number) of days." There is documentation of these relationships, but I can't quite remember where I'd seen it...I'll look. Bear in mind that there are always other intangible factors, including news, institutional investor participation, the effect of options pricing and expiration - and institutional participation in such, which could make such an experiment worthless. I think it'd still be interesting, though! Regards to all, LPS5