Wednesday, November 22, 2006

Short Activity on NYSE Takes a Tumble

Short-selling activity fell at the New York Stock Exchange for the first time since February, as the stock market's continued rally to records finally scared off some bearish investors.

For the monthly period ended Nov. 15, the number of short-selling positions not yet closed out at NYSE -- so-called short interest -- declined 1% to 9,648,665,452 shares from 9,744,698,431 shares in mid-October.

Marketwide, the short ratio, or number of days' average volume represented by the outstanding short positions at the exchange, fell to 6.0 from 6.2. Expect this rally to continue for few more weeks. If you are short on market, it's time to rethink your strategy!

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