SHORT RATIO (OR SHORT INTEREST RATIO)

This is the ratio number of shares of a security that investors have sold short divided by average daily volume of the security (measured over 30 days or 90 days). There are various interpretations of this ratio. When people short, that is usually (but not always) because they are pessimistic about the security's future performance. However, when you short, at some point, you need to purchase. Hence, some would interpret a large short ratio as an indicator that there will be some buying pressure on the security which would increase its price.