RegSho FINRA List; Urban myth correction.... What
Post# of 3844
Posted On: 02/08/2014 8:42:29 AM
RegSho FINRA List; Urban myth correction....
What "surfkast" here says is not correct!
What "surfkast" here says is not correct!
"BOLD NUMBER IS THE SHARES SHORTED ACCORDING TO FINRA.
20140206|EWSI| 2126702 |0|5290332|O"
Its a persistent urban myth to think that these are retailers shorting stocks, which is simply not true! Most this of volume is solely attributed to Market Makers shorting to satisfy a trade long of a retail trade. When a MM is out of shares in his inventory, or there aren't any direct trades to match, due to higher bid/ask spread they'll short stocks to match an order, and then cover it later, sometimes even seconds later. MM's have to keep an orderly market and shorting is just one of their techniques to keep the volume flowing, which is their purpose...
There are people out there that explain it better than me, but it works like I described, more or less.
See MM Tricks: (A MUST READ)
There is hardly any shorting in EWSI (like most other OTC Stocks).
Also an interesting read:
Red Flags of Market Maker Manipulation (MMM) or Maintaining an Orderly Market
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