Any experienced trader will know that short interest ratio above 8x indicates that the stock is heavily shorted. Look at First Solar (FSLR) chart below which shows a strong rally due to short squeeze of epic proportion back in 9th April. The 40mil volume traded, with stock spike from $26+ to close to $40+ send short sellers running for the exit. It also help pushed the entire solar stocks north, due to FSLR had released a higher than expected full-year financial target and announced that it will acquire a high-efficiency module company.
Read more here: Articles by Hedgie
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