US Precious Metals (fka USPR)

[russo123]

First, OTCShortreport.com is not FINRA. They claim to get the data from FINRA, but they ain't FINRA.

Second, a little more knowledge for you. Every trade has to be reported to the tape. If the trade is between 2 MM's, then the seller reports it to the tape. If the trade is between one MM and one non MM, then the MM reports it to the tape.

Now, the seller has to report it as a long sale or a short sale or a cross. And it is NOT reported as to what the eventual seller is doing, but rather as what the MM is doing.

So, lets say MM #1 has no position in USPR. If he receives an order from a customer to sell 2000 shares (that the customer does own making it a long sale) of USPR on the bid, he has 2 options. Buy the 2000 for himself and try to trade it for a profit, or hit the bid on behalf of the customer order. So he hits the bid of another MM. 2 MM's means seller reports. Since he had no position in USPR before this order, he MUST report the trade as a short sale. Then he immediately reports his buy when he buys his customers 2000 shares (which was a long sale) and he is now flat.

So, even though the initial customer order from the customer was a long sale, the MM had to report his sale of 2000 shares as a short sale. But he was only short the 2000 shares for seconds until he reported his buy from his customer who sold.

OTCShortreport.com is meaningless. All that matters is short interest reported, not short sales.

Your welcome.