Short Squeeze

Stocks at Risk of a Short Squeeze

Hello Marco,

Although the use of "short interest vs. total shares outstanding" is valuable information for some situations - the indicators best used for short squeezes are those that detect the impact of short interest on the price of the stock, such as average daily trading volume vs. outstanding short interest (Days To Cover) or Short Percent of Float to mention a two. Days to cover, for example helps identify the "easability" to cover (purchase) shares in a stock during the trading day. A stock with low average daily trading volume, relative to shares short (DTC) is a recipe for a greater impact on stock price. Concentration levels of short interest are one part of the equation. Stock performance is the second part. I have posted more details regarding Squeeze Theory for you to visit in the "tour" section of the website: www.shortsqueeze.com/S... . This will explain much more indepth dynamics that can cause huge changes in stock price.

Good wishes and good trading,
Dylan