But compare the volume yesterday to the volume tod
Post# of 72447
(Total Views: 549)
Posted On: 06/14/2017 8:06:01 PM
But compare the volume yesterday to the volume today. We know that there was indeed some real buying today by many here (based on PMs and emails I've received).
This is why we've been trying to figure out a way to interpret this statistic, taking into account both volume and percentage. We've seen it vary from 7% to 78%. It does tend to be lower on high-volume days.
AlanC's interpretation (hope I'm saying this correctly) is that the FINRA percentage indicates approximately the REAL trading volume -- in other words, the volume that excludes what Alan calls "wash trades" (not in the tax sense) which are those trades we see so often, trades of about the same volume at about the same price, which are fake trades put in there just to make the volume look bigger.
So under that theory, about 30% of about 800k shares would be 240k of real volume, excluding the phony baloney trades that were used to walk the price down etc.
If anyone has other theories as to how to interpret that FINRA number, it would be interesting to hear them. The one thing we know they are NOT is what they claim it to be. They claim it's just temporary shorting to make a smooth market. Well, if that were true, then someone can explain to me how it was that on a number of occasions I went in with a bid at the level they were supposedly offering shares for sale -- and yet I sat there for more than 5 minutes WITHOUT getting filled. So I certainly do not believe that the shorting number is some selfless market maker just ensuring that I get filled quickly.
By the way for anyone who doubts that fake trades are used to affect price, please remember the infamous day when a series of 10-share "trades" took the price down hugely. Ten, yes, TEN share trades. What BS.
This is why we've been trying to figure out a way to interpret this statistic, taking into account both volume and percentage. We've seen it vary from 7% to 78%. It does tend to be lower on high-volume days.
AlanC's interpretation (hope I'm saying this correctly) is that the FINRA percentage indicates approximately the REAL trading volume -- in other words, the volume that excludes what Alan calls "wash trades" (not in the tax sense) which are those trades we see so often, trades of about the same volume at about the same price, which are fake trades put in there just to make the volume look bigger.
So under that theory, about 30% of about 800k shares would be 240k of real volume, excluding the phony baloney trades that were used to walk the price down etc.
If anyone has other theories as to how to interpret that FINRA number, it would be interesting to hear them. The one thing we know they are NOT is what they claim it to be. They claim it's just temporary shorting to make a smooth market. Well, if that were true, then someone can explain to me how it was that on a number of occasions I went in with a bid at the level they were supposedly offering shares for sale -- and yet I sat there for more than 5 minutes WITHOUT getting filled. So I certainly do not believe that the shorting number is some selfless market maker just ensuring that I get filled quickly.
By the way for anyone who doubts that fake trades are used to affect price, please remember the infamous day when a series of 10-share "trades" took the price down hugely. Ten, yes, TEN share trades. What BS.
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