lowtrade

[lowtrade]

Using short interest to predict future price direction is a educated way to predict. But not project direction, as TA & Charts do.

Personally I always rely on projection over predictions. Predictions are feelings based and projections are historically based. What might happen vs. what has happened.

While CLF has had a 8% reduction in it's short, from Oct 15 to OCT 31. It still sits @ 16.85%, which is HUGE.
http://shortsqueeze.com/?symbol=clf&submit=Short+Quote%E2%84%A2

I just don't understand your reasoning. The more short interest the more possibility price lowers. Not reverses north.

One who wants to predict upward price movement needs less the 10% short interest. IMO That's fewer institutional big guys evaluating the stock should go lower.

At any rate Good luck, nothing about the market is black & white. Personally I find CLF as a dark gray in the mid term. Because I trade, not invest. To invest, one needs to evaluate fundamentals, with a long term TA & Chart evaluation.

Your long prediction could be correct, as the company management seems to be doing a good job, alone with institutional interest @ 60% and business margins positive. But right now it isn't.

If this continues, (as projected), logic does not agree with adding good money on bad price direction movement. To lower a long position price level. IMO it's better to take a loss on any pop day and start back in, after a trend reverses.