shorts days to cover is an indicator on how large the short position is. You take the total outstanding and divide by the short interest and that gives you a number that, if only the people short bought the stock, with the average volume, that is how many days it would take for them to cover the complete short position. The larger the number, the greater the relative short position is and if a stock spikes up, it will add more momentum to the movement as shorts scramble to cover.
Cheers!
great comments...thanks.
What do you mean by the shorts have "x" number of days to cover? I know many technical terms but this I still gotta figure out If you could help.
shorts days to cover is an indicator on how large the short position is. You take the total outstanding and divide by the short interest and that gives you a number that, if only the people short bought the stock, with the average volume, that is how many days it would take for them to cover the complete short position. The larger the number, the greater the relative short position is and if a stock spikes up, it will add more momentum to the movement as shorts scramble to cover.
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