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

To: Nukeit who wrote (2864)	4/18/1998 1:59:00 PM
From: F R Bachmann	Read Replies (1) \| Respond to of 4969

Joneb, I believe that what you might be asking about is the short interest expressed as a multiple of average daily volume. In other words, if the short interest is 1,130,000 shares and the average daily volume is 1,000,000 shares then the short interest is 113% of average daily volume. If the short interest was 5 million shares and average daily volume was 1 million shares then it would take the shorts 5 trading days to cover. Now of course, if all the shorts were trying to cover at the same time I would expect a large increase in daily volume as well as price. This is my understanding of how this works. Hope it helps clarify. (Steve, if I'm off the mark please let me know.) Fred