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Nvidia Short-Interest Signal 'Weak,' S3's Bob Sloan Says

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Bloomberg 18:42 · 10.9k Views

S3 Partners founder and Managing Partner Bob Sloan discusses the signaling coming from short-interest data ahead of Nvidia's earnings report.

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Transcript

  • 00:00 Tell us what you're seeing in terms of positioning ahead of this all important earnings announcement.
  • 00:05 Sure.
  • 00:06 So last time we were on we were talking about
  • 00:09 how much shorting was going into the run up of the stock and we said that there's very strong signaling coming out of the short interest data
  • 00:16 for a reversal turned out to be right
  • 00:18 this time around.
  • 00:19 You know, the signal is not as strong.
  • 00:22 The market saying has to move 9% either way.
  • 00:24 But you know, those stats don't incorporate short interest into the calculation of volatility.
  • 00:29 And our signal says it's pretty weak.
  • 00:31 You know, we don't tell people what to buy or sell.
  • 00:34 We just say what the data says.
  • 00:35 So we, we say, we say it's, it's, it's pretty weak.
  • 00:38 But people have been covering the stock and chasing momentum in the last, you know, week or so.
  • 00:43 That's really interesting that
  • 00:44 this time around, like you said, there's not as strong of a signal.
  • 00:48 Why do you think that is?
  • 00:49 You think about other names who of course, have had this type of interest and to see it fade away does that, Is there anything we can extrapolate out from that?
  • 00:58 No, other than that the signal is weak.
  • 00:59 You know, it's not going to be strong or, or it's not going to give you clarity every single time.
  • 01:04 But what it does tell you is that we feel like last time you could lead into it, and this time you probably can't.