Wednesday, December 28, 2011

Short Interest Ratio - S&P Sectors

Included below is the short interest ratio (SI ratio) for the S&P 500 by sector. For the two weeks from 11/30 to 12/15 there was a significant decrease in telecom and materials while industrials trended higher. Although the SI ratio don't predict future price action, they do provide insight into how investors are currently positioned.



Below is a regression (for the non-math majors - this is used to show historical relationships between a dependent and independent variable) between the price of SPYs and the stock's SI ratio.

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