An increase in the ratio of short sales by specialists to total short sales is interpreted by smart-money technicians as:
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A. B. C. D.D
As part of their market-making activities, specialists regular indulge in short-selling activity. However, since they have some discretionary authority over short selling, smart-money technicians (who track the behavior of "smart" investors) consider a low participation rate by specialists in the short-selling activity as a bullish signal. This participation rate is characterized by the ratio of specialist short sales to total short sales. When this ratio falls below 30%, smart money says it is a bullish signal and when it rises above 50%, it is considered a bearish signal.