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Re: StockWatcher post# 21701

Wednesday, 04/03/2013 10:05:48 AM

Wednesday, April 03, 2013 10:05:48 AM

Post# of 146838
You can't look at the dailyshort volume - the information is worthless.

The short data for all OTC stocks including those quoted on OTC Markets (Pink Sheets) is sent to FINRA twice a month by broker/dealers. FINRA compiles it and publishes a semi monthly report. These bi-weekly reports show the aggregate short position by all market makers as of that settlement date.

The SRGE bi-weekly reports show no significant aggregate short positions. They can be found here: http://www.otcmarkets.com/stock/SRGE/short-sales or by entering the ticker on the OTCBB short interest page:http://www.otcbb.com/asp/OTCE_Short_Interest.asp

OTCMarkets ignores the daily short volume report. They understand it has zero relevance.

MMs do not "short" penny stocks. As part of making a market, they may have periodic short positions throughout a trading day if they fill buy orders for more shares than they have in inventory, but they also often have inventory when they fill sell orders. Having an inventory does not mean that they are going "long" any more than having a temporary net short position is "shorting." This kind of temporary short position is legal and necessary for efficient trading.

For a better understanding: http://investorshub.advfn.com/boards/read_msg.aspx?message_id=49600596

IG

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