I have a vague recollection from a long ago post on this board indicating that with issuance of shares, perhaps through warrant exercise that when posted for sale show up in the short volume ratio. I don’t believe that to be correct but I am trying to process the very high short volume ratio…yesterday that was 57.21% where 13,527,074 shares were sold short. That is a lot of shares! If you track trading day to day it is almost as though the short volume is titrated to effect, rising and falling based on long volume.

I do believe the market maker, who can legally do naked shorting, may well do so if he/she finds themselves short of shares and may need to load up on the strength of heavyweight short term pressure which can encourage some profit taking…it doesn’t take much when volume lightens up for that to work. I think naked shorting should be illegal, none-the-less the outstanding fails to deliver pale in comparison to the short volumes we have witnessed.

I am a long term investor and generally do not obsess about it and prefer to engage on the science and truly market moving news but it would be useful to know if someone has insight into the question on these trading dynamics. My investing maxim has always been true value always comes out in the end but this dynamic does tweak my curiosity.