The Short-Market Investment Strategy?

One market strategy is watching the size of the number of short positions on the NYSE and Nasdaq exchanges.

“Short” shares are borrowed and then sold, hoping the price will fall before the borrowed shares have to be replaced. A larger than normal position can be bullish because it means more buying than the previous selling positions.

Yet, there can be other reasons why traders take such trading stances to reduce risk. At any rate, the strategy doesn’t always work for whatever the underlying facts.(See the Earl J Weinreb NewsHole® comments.)