(Total Views: 166)
Posted On: 06/21/2017 9:00:32 AM
Post# of 72446
I like how this post puts those numbers in perspective...
Quote:
There are many mistakes made by using the daily short volume numbers.
First, the numbers are NOT cumulative.
Second, and far more important, they have nothing to do with actual shorting.
To understand why, one needs to know how trades are reported. The short explanation is that only the first leg of a trade is required to be reported. And, if the MM initiating the trade on behalf of a client (brokerage) has no shares, he then makes the trade, which makes him short. However, in 99.99% of the trades, a long broker accepts the short and that "closes" the trade.
The main thing to be concerned with is whether the security has any fails to deliver, or is on the Reg-Sho list. This one is not, and it is very seldom seen in OTC securities.
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