Keep in mind that a portion of the daily short vol
Post# of 16816
Posted On: 10/12/2012 7:46:23 AM
Keep in mind that a portion of the daily short volume on BCAP and other stocks is not from shorting. Let me explain.
In the US, we have a 3 day settlement period for stock equities. What this means is this: if john doe buys a stock say friday morning he now sees those shares in his account, however the transaction does not actually settle for 3 days. Thus, if john doe was to sell those shares before the 3 days period of settlement, this sale of stock will show on the reg sho daily as part of the short volume. Flippers and day traders of fast moving momentum stocks add significantly to the total short volume number because of not holding for 3 days. We have not been shorted 200m shares in the last 3 days. That number is likely far lower.
If in theory flippers and day traders were not here, the daily short volume would likely be somewhere between 5-15 % imo.
I hope this helps. In order for our run to stay strong, we need for more folks to hold their shares very tight. Need to minimize the flipping and buy and hold for a sustained run here.
PC
In the US, we have a 3 day settlement period for stock equities. What this means is this: if john doe buys a stock say friday morning he now sees those shares in his account, however the transaction does not actually settle for 3 days. Thus, if john doe was to sell those shares before the 3 days period of settlement, this sale of stock will show on the reg sho daily as part of the short volume. Flippers and day traders of fast moving momentum stocks add significantly to the total short volume number because of not holding for 3 days. We have not been shorted 200m shares in the last 3 days. That number is likely far lower.
If in theory flippers and day traders were not here, the daily short volume would likely be somewhere between 5-15 % imo.
I hope this helps. In order for our run to stay strong, we need for more folks to hold their shares very tight. Need to minimize the flipping and buy and hold for a sustained run here.
PC
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