To: Bill Harmond who wrote (36404 ) 1/24/1999 8:25:00 PM From: Gary Walker Respond to of 164684
Bear capitulation?? When's the last time short interest fell this much? Short Interest Fell 7.5% On Big Board in Month By a WALL STREET JOURNAL Staff Reporter NEW YORK -- Short interest on the New York Stock Exchange fell in the latest month. It also declined on the American Stock Exchange. See a complete listing of short-interest statistics. Short interest on the Big Board decreased 7.5% to 3,654,364,834 shares on Jan. 15 from 3,951,255,005 shares in mid-December. On the Amex, the figure fell 8.3% to 161,208,958 shares on Jan. 15 from a revised 175,727,949 shares in mid-December. The level of negative sentiment measured by the Big Board's short-interest ratio -- sometimes considered a contrarian indicator, as short-interest shares eventually must be purchased -- fell to 4.9 from 6.00 in the previous trading period. The short-interest ratio is the number of trading days at the exchange's average daily trading volume required to convert the total short-interest position. Investors who sell securities "short" borrow stock and sell it, betting that the stock's price will decline and that they will be able to buy the shares back later at a lower price for repayment to the lender. Short interest is the number of shares that haven't been purchased for return to lenders, and is often viewed as an indicator of the degree of negative sentiment among investors in the stocks. Investors may also rely on short selling for other purposes, including as a hedging strategy related to corporate mergers and acquisitions, to hedge convertible securities and options, or for tax-related purposes. Average daily Big Board volume was 739,445,840 shares up from 658,603,381 shares in the previous month. Short positions were calculated for the month including the 21 trading days.