By Ben Morris
Short interest is the percentage of a company’s tradeable shares that folks are holding short.
Short sellers must buy shares to close out of their positions. And if the stock they’re holding short is rising, their losses are growing.
At some point, they’re going to jump out of the burning building. Remember, a stock can only go down so far. But there’s no limit to how much it can go up… especially if nobody is eager to sell their shares.
The “days to cover” – can give you an idea of how big a short squeeze might be. Once you get past four or five days to cover, you have the potential for an explosive move.
Source: DailyWealth Trader
http://dailytradealert.com/2017/03/29/u ... ve-stocks/