How and When MMs cover their short volumes?
I have a question. Could anybody enlighten me?
I believe that the absolute volume of the short is also significant, as well as the percentage. For example, on Mar. 31, the short percentage is 87 %, which is very high, but the absolute short volume is only 2.9M; by contrast, on Apr. 7, the short volume is enormous 85M. During that day, the price was between $0.0025 and $0.0050.
My question is whether those shorts of 85M between 0.0025 and 0.0050 on Apr. 17 have aleady been covered, or should be covered soon.
I think, since the prices for the last four trading days were below $0.0050, if the MMs wanted to cover, they were able to do that, with respect to price; however, was the volume enough? For the last four trading days, the sum of entire volume is 134.8M, but short is also 54.9M. Then, the net volume, which was not shorted, is 134.8-54.9=79.9M. This volume seems not enough to cover the only one day's short, 85M. Besides Apr. 7, MMs has shorted a lot.
I know that MMs must cover their shorts within 13 days. However, if the absolute trading volume itself dwindles gradually (as we have ovserved recently), then even though the price goes down, how can the MMs cover their shorts. There is no enough volume!
If you were an MM, what would be your strategies?
Could anybody in the mountains and buildng woods give us a lesson?
Short Volume Percentage
20100419|ETLS|10,528,291|25,386,615|41%
20100416|ETLS|12,731,135|24,837,515|51%
20100415|ETLS|9,395,495|19,871,388|47%
20100414|ETLS|22,310,473|64,982,586|34%
20100413|ETLS|15,968,631|52,754,962|30%
20100412|ETLS|32,573,034|70,403,821|46%
20100409|ETLS|33,602,351|85,769,859|39%
20100408|ETLS|26,961,454|54,840,088|49%
20100407|ETLS|85,173,530|195,656,825|44%
20100406|ETLS|25,345,080|74,477,428|34%
20100405|ETLS|6,124,134|10,718,199|57%
20100401|ETLS|3,397,000|12,089,493|28%
20100331|ETLS|2,951,000|3,410,000|87%
