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Strategies & Market Trends : The Round Table: A work by the squares of the SNDK thread. -- Ignore unavailable to you. Want to Upgrade?

To: Jason Rooks who wrote (23)	3/1/1999 2:10:00 PM
From: Artslaw	Respond to of 194

Looking at the data, you would say that the shorts are covering for the last four months, which would partially explain some of the stock price appreciation {or it is because of the appreciation}. Since the volume is also increasing, the ratio (# days to cover all shorts) is decreasing even faster (as the numerator {shares short} increases and the denominator {volume} increases). A technician would call this bad, as it implies that there are not as many shorts left to cover, since they are guaranteed buyers eventually. This logic best applies to low-float, low-volume stocks; a group SNDK is not quite a member of (but not all that far off, either). That's my 2¢ anyway, Steve