InvestorsHub Logo
Followers 3
Posts 99
Boards Moderated 0
Alias Born 05/12/2016

Re: girlfriend post# 271

Thursday, 01/26/2017 1:47:56 PM

Thursday, January 26, 2017 1:47:56 PM

Post# of 672
As days to cover is 4.0, it measures the future buying pressure on a stock that is virtually certain to happen as short sellers must buy back shares to close out the positions.

If a stock's price begins to rise significantly, investors who have short sold the stock quickly begin to close out the positions by purchasing shares off the open market.

This occurs because short sellers aim to purchase the shares back for the lowest price possible. Signs that the share prices are about to rise create buying pressure for the stock and drive the price up even more.

So next week will be interesting IMHO.

EGLT

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.