B. Approaches to Technical Analysis (continued)
- c. Short Interest -- measures the number of stocks sold short
- when the level of short interest is high, by historical standards, then the situation is optimistic.
- d. Odd-Lot Trading: Theory of Contrary Opinion
- if the amount of odd-lot purchases start to exceed odd-lot sales by a widening margin, it may suggest that speculation is occurring among small investors. This is the first signal of an upcoming bear market.