It is just a ratio I use. They don't actually have to cover. YOu take the short interest and divide that by the 100 day average volume. The resulting number is the number of days it would take for all shorts to cover if only shorts were buyers. A number less than 5, not much influence. 5- 10 and with a catalyst it should add momentum. Over 10 and a catalyst, let the fire works begin!
Can always count on you for the best watch lists !! Thank you Mr Bob
Hey Bob. How do you know how many days people have to cover? Does everyone have to cover on the same day???
It is just a ratio I use. They don't actually have to cover. YOu take the short interest and divide that by the 100 day average volume. The resulting number is the number of days it would take for all shorts to cover if only shorts were buyers. A number less than 5, not much influence. 5- 10 and with a catalyst it should add momentum. Over 10 and a catalyst, let the fire works begin!
Thanks for the info! Another tool in the arsenal. :)
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