Short interest
What it is: the % of tradable shares currently borrowed and sold by people betting the price FALLS. A live poll of professional pessimism.
How to read it:
• Under 3% = nobody's fighting it · 5-10% = real bear case exists — read it before buying
• 15%+ = battleground stock: heavy conviction it's going down, BUT...
The squeeze mechanic: shorts must eventually BUY to close. If a heavily-shorted stock rises instead, shorts buying to escape adds rocket fuel — that's a short squeeze.
The sober truth: shorts are often the best-researched traders in the market and high short interest predicts UNDERperformance on average. Treat it as a warning first, squeeze fuel second.