I am reading on various topics (as some may have gathered from posts). I understand the concept and implications of a short-sale pretty well. I understand how to interpret the short-ratio. Everything was going fine until I read a part that confused me.
IF the short-ratio goes up, it may indicate that investment sentiment in the company is decreasing, meaning stock prices might go down. However, a youtube video said that short-ratios of 5+ are considered bullish, meaning stock prices go up.
Shouldn't it be that short ratios of 5+ are considered bearish, not bullish? Is it only "bullish" because a high-ratio is more likely to cause short-squeezes?
Thanks once again.
Thanks for the insight that they are a waste of time. Ill look into that as well jeje, thank you.