When spotting a shift in any stock’s sentiment, the gauge investors lean on for their ideas usually considers only one side of the equation. That side is who is buying the stock, as far as any big investors or other institutional buyers. There is strength in numbers and knowing that the so-called “smart money” has done enough homework to justify having a position in the underlying stock.
[content-module:CompanyOverview|NASDAQ:SOUN]However, the other side of the equation is barely considered. This means looking at who is selling the stock and how much of it is currently held in short positions. When the scale tilts too much to the short-selling side, any hint of upside potential or sharp moves can trigger what is known as a short squeeze, a concept that will be explained in just a bit.
