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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Silent who wrote (15560)	12/13/2002 12:53:05 AM
From: Dan Duchardt	Read Replies (2) \| Respond to of 19219

If you extend the argument, in principle you can reach a much higher short percentage than 50%. If the 10 new longs are loaned for shorting you get to 30 long and 20 short, and if the additional 10 longs are loaned and shorted you get to 40 longs and 30 shorts, etc., etc, In any case, when the short % is calculated I expect it is not referenced to these created longs, but rather to the shares outstanding or perhaps even to the float. So if only all the original long shares are loaned and shorted the short ratio would be 100%, not 50%. If the created longs are shorted the percentage could go above 100%. From what I have seen such high percentages are very unusual, the exceptions being some BB stocks shorted by MMs who don't have to borrow before selling short.