RE: Shorts Good morning
Shorts are hard to understand for basic investors. The web site shortsqueeze.com is a US based short site which is where most of this info come from:
defines: "Shares Short
The shares that have been sold in the open market, with the assumption that the stock price will go down. If the stock goes up instead, the need to lessen losses can trigger the buying of stock.
"Short Squeeze
A short squeeze is a strong, bullish price move that occurs when people buy stock. When a trader is short a stock, they profit when the stock price goes down, and suffer losses when the stock price goes up. The total number of short shares in a stock is called the "short interest". As a stock trades up in price, people who are short suffer trading losses.
To lessen the inherent risk of this, traders often times initiate stop loss orders at key price points commonly recognized as indicators of whether a stock is trending up or down: the 52-week high, 50 day MA, and 200 day MA.
Since someone short a stock, suffers trading losses in a stock that is trending up, a breach of these levels can trigger a powerful chain reaction of buying, causing a surge in stock price up, called a "short squeeze". These price levels can become areas of heavy trading activity and great market opportunity when short interest is at extremely high levels. If the stock however, does not decisively breach these levels, the shorts can flood into the stock as it displays a continued downward bias.
US - Karnalyte Shorts
| KRLTF | $ |
| KARNALYTE RESOURCES INCORPORATED | |
| Shares Short | 106,100 |
| Days To Cover (Short Ratio) | 353.7 |
| Short % of Float | % |
| | |
Canadian Shorts:
Almost 600,000 shares shorted. There has been only 1 day which had a higher volume trading day which was the IPO date! I will take a a couple of months at current trading patterns to clean it up. I see short squeeze!