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To: GROUND ZERO™ who wrote (38442)	10/23/1999 9:56:00 AM
From: Stoctrash	Respond to of 44573

..I just woke up and now you guys are making me sleepy again, aren't you on the wrong thread for this kinda talk? <GGGG> If everyone is betting on it, talking about it...then,,..it's not likely to happen. from JJ on Ike's thread: Message 11681411 From Schaeffer's Investment Research- The total short interest of an equity represents the total number of shares that have been shorted (borrowed and sold) by investors and not closed out at the time of reporting. These shorted shares that must be repurchased, or covered, at some future date. The larger the total short interest, the more potential buying power that is sitting on the sidelines. In the event that the share's price starts to appreciate very rapidly, traders may be forced to cover their short positions because of margin requirements or to prevent losses from getting out of control. In turn, this creates more upward price pressure, which forces even more short positions to be covered. This phenomenon is called a short-covering rally and will sometimes happen to stocks with a large amount of short interest. The current short interest for Standard and Poor's Depositary Reciepts (SPY - 129.00), a security that allows investor to go long or short the S&P 500 Index (SPX - 1283.61), has reached approximately 29,000,000 contracts from 21,000,000 contracts last month. This means that investors have reached a pinnacle of pessimism for the outlook of the SPX. This record level of short interest is the highest seen since October 1998, which is just before the market began to rally. This combination of investor pessimism and potential for a short-covering rally are healthy signs for the market. jj