Short interest ratio, known also as days to cover, is a metric used to evaluate the levels of bearish pressure affecting a stock. The greater the value, the heavier is the pressure. In order to calculate the short interest ratio, the average daily trading volume of the stock is divided by the number of shares that are shorted. Simply defined, by comparing a stock's short interest to its average daily trading volume, the ratio can instantly inform an investor if a stock is highly shorted or not. At some point stocks that are heavily shorted will start attracting buyers. If the buying pressure keeps growing, it will trigger what's called a short squeeze, a situation where short sellers are trying to get out of their short position as quickly as possible. A short squeeze will generally create a bullish wave that will lift the price significantly.
As we all know, 2022 has been a painful year, and it continues to be so. What works during a bearish market are a few strategies: shorts, inverse ETFs, holding cash positions and day trading. Today we take a look at ATXI and see how we day traded it. Watch this video to get the technicals. Good trading! Trading Risk Disclaimer All the information shared is provided for educational purposes only. Any trades placed upon reliance of SharperTrades, LLC are taken at your own risk for your own account. Past performance is no guarantee. While there is great potential for reward trading stocks, cryptos, commodities, options, forex and other trading securities, there is also substantial risk of loss. All trading operations involve high risks of losing your entire investment. You must therefore decide your own suitability to trade. Trading results can never be guaranteed. SharperTrades, LLC is not registered as an investment adviser with any federal or state regulatory agency. This is