What is considered high short interest in a stock?

What is a high short interest percentage? Short interest below 10% signals bullish sentiment. Short interest over 10% starts to signal bearish sentiment. Short interest over 20% starts to show extreme bearish sentiment. Short interest over 30% can start signaling it is late in the bearish price cycle lower.

What does short interest indicate?

Short interest is the number of shares that have been sold short but have not yet been covered or closed out. Short interest, which can be expressed as a number or percentage, is an indicator of market sentiment . Extremely high short interest shows investors are very pessimistic (potentially overly-pessimistic).

What do stocks have short interest?

Short interest refers to the total number of shares sold as a percentage of a company’s total outstanding shares. If a stock has a short interest of 10%, then it means that for every 10 outstanding shares, one is held as a short. Stocks with high short interest are usually at risk of “short squeeze,” a phenomenon that is most of the time ...