Phil Erlanger Research Co.
Type Classifications
One of the challenges of quantifying our analysis has been to make the numerical representation equivalent to what we have experienced in charting. Additionally, we sought to make the enhancements as useful as possible. These two goals lead us to the development of our stock Types system of classification. The different Types reflect the relationship between the Short Intensity Rank, Short Interest Ratio and the Technical Rank.
Type 1 - Short Squeeze or Buy Recommendation
- High Technical Rank >= 70%
- High Short Intensity Rank >= 60%
- Short Ratio >= 1.5 days to cover
Type 2 - Recognized Strength or Hold Recommendation
- High Technical Rank >= 70%
- Low Short Intensity Rank <= 30%
- Short Ratio < 4 days to cover
Type 3 - Shorts are Right or Sell Recommendation
- Low Technical Rank <= 30%
- High Short Intensity Rank >= 60%
- Short Ratio >= 1.5 days to cover
Type 4 - Long Squeeze or Short Recommendation
- Low Technical Rank <= 30%
- Low Short Intensity Rank <= 30%
- Short Ratio < 4 days to cover