To: zTrader_77 who wrote (32378 ) 3/25/2005 12:01:17 PM From: Max Fletcher Read Replies (2) | Respond to of 120415 Short interest at all-time high. Will be interesting to see how this plays out over the next few months. A contrarian might arugue it is a bullish sign:money.cnn.com Short positions hit record highs Short interest on the Nasdaq rises to 5.577 billion shares, while 8.419 billion shares for NYSE. March 24, 2005: 6:28 PM EST NEW YORK (Reuters) - Short interest on the Nasdaq stock market rose in the month through March 15 to its highest level ever, according to data from the technology-heavy exchange. As of mid-March, total Nasdaq short interest rose to 5.577 billion shares, up from 5.357 billion in mid-February, Nasdaq said on Thursday. The Nasdaq's short ratio, or the average number of days it would take to cover the outstanding short positions, rose to 2.87 days in March from February's average of 2.61 days. On Monday, the New York Stock Exchange said short interest on the NYSE also rose to a record in the month through March 15. NYSE short interest on March 15 rose to 8.419 billion shares from 8.007 billion shares on Feb. 15. Short interest in the stock market is often a gauge for the level of skepticism among investors. Rising short positions can be a bearish indicator, since investors are betting that more stock prices will fall. A reduction in short positions can be perceived as bullish. Investors who sell securities "short" profit if stock prices fall. Short-sellers borrow shares and sell them, hoping to buy them back at a lower price and return them, pocketing the difference. Some contrarian investors, however, see rising short positions as a positive signal for the market. Because short positions represent stocks that must eventually bought, the existence of a large short position heightens theoretical demand for shares. That can cause an acceleration in upward movements in stock prices, as short sellers rush to cover positions before losing money on them.