[goodtyneguy]

Do you have any concern over the short interest? The latest I can find is on yahoo finance and is dated May 29th. The ratio then was 7.9. I don't have the book in front of me but I recall 10 being high and ideal being 3 to 4. My broker gives me a % of float as 17.17%. For now, I added to my watchlist. If it gets closer to the buystop I will look at shorting with the buystop closer to lower the risk.

I am new to the site by the way. It is fantastic.

Hi gbarbs and welcome to Stage Analysis. That's a good question and something that had slipped my mind when considering short positions. I'll try to answer it as isatrader is out of the country for the next few days.

You can get a more up to date short interest figure from here. My calculation of the ratio is a tad over 4 on a look back period of 22 days for the average volume. Weinstein got his average daily volume from the Wall Street Journal whose tables were published on a monthly basis so I guess the look back period for the average would be about 22 days. I believe that's about the average number of trading days in the month.

Weinstein said that many stocks have ratios of 3 to 4 the average daily volume which he considered to be on the high side but the stocks he was referring too in the book as "sucker stocks" had ratios of 5 and over. So it really depends how aggressive you want to be.

Good luck with it.

P.S. Page 222

EDIT: The WSJ published their tables from monthly data compiled by the New York and American Stock Exchanges.