People tend to attribute too much causal power to short levels that are too low to have any meaningful effect. In my view.
I prefer to read short levels as one indicator of perceived risk in the market, more so than something that is actively suppressing or undermining the SP. And even then, they are not a particularly reliable indicator of actual risk, because perceptions are frequently wrong.
Short levels have fluctuated from as high as 7% to as low as 2.5% in the past couple of years, and are now sitting around the longer term average. They do not seem to have varied in a way that is meaningfully correlated with the SP but it would be interesting to overlay the two trends on the same time scale, to test that theory.
A2M Price at posting:
$5.50 Sentiment: Hold Disclosure: Held
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