shajandr Member Profile shajandr Tuesday, February 09, 2016 1:52:25 AM Re: Goodbuddy4863 post# 342490 Post # 342493 of 344242 Go OK, that CONclusion is WRONGGG, stupid, ridiculous, bizarre, unfounded, assbackwards, incorrect-as-hell, totally false, inane, obtuse, misguided, CONfused, inaccurate, absurd, wrongheaded, and bogus-as-can-be.
Short sales during the trading day are NOTT the short interest in a stock, they are intra-day trading artifacts, nott positions.
The only thing that is relevant is the short interest, which are short positions that last more than one trading day and are nott intraday trading artifacts, butt are investment positions.
And the short interest is reported by FINRA every two weeks and can be found here:
Quote: slojab Member Level Thursday, 11/25/10 09:01:20 PM Re: None Post # of 869
An explanation of Finra's daily short volume.
(Courtesy of a post made by pantherj)
The daily short interest report from FINRA is as widely misinterpreted as any report ever put out. Yet, once a few basics are understood, it becomes very logical. The huge short volume seen in the daily reports are almost instantaneously covered; within a few milliseconds or a few hours at worst. The best explanation of this report, that I've ever seen, was posted by "Dave Patch" of "Investigatethesec.com."
Posted by: patchman Date: Wednesday, March 03, 2010 6:31:31 PM In reply to: fourkids_9pets who wrote msg# 648 Post # of 951
Short Sale Volume Reporting’s are deceiving. I spoke to FINRA today and found out some very interesting things that until now I did not fully understand. I knew there was something wrong with this transparency of information but was not 100% sure what it was. I think I have my answer and it was enlightening.
I was first directed to the Notice to Members memo dated 9/29/2009
The individual I spoke with wanted to make clear that to maintain proper trade volume reporting accuracy, a trade with multiple legs in the trade would only be reported once in the volume reports. The example given would be.
Investor A is long 100 shares and wants to sell. They enter the order through their broker that is routed to a market maker. That market maker will go out and sell the stock into the market before they have bought the stock from you/your broker to close out their account. They do not take possession first as there is no guarantee they can sell the order into the market. By this Notice, the actual sale INTO the market is a short sale because the market maker sold the stock into the market BEFORE they had purchased the stock from you. It is a technicality since they know there position will be closed out minutes later when they go in and buy your shares. To avoid doubling up on trade volume and distorting the picture, only the sale into the market (consolidated tape) is recorded and not the second leg which was the sale transaction between seller and market maker.
So, this is why the short sale volume is high but also why the FTD’s and bi-Monthly short interest reports are not showing any indications of this volume. The short isn’t really a short it is the execution of a long sale by a market maker. The key language in the FINRA notice is this:
Quote: -------------------------------------------------------------------------------- The Daily Short Sale Volume File will provide daily access to the aggregate volume of short sales in NMS Stocks and OTC Equity Securities reported to a consolidated tape and traded over-the-counter during regular trading hours on each trading day.
Despite this having been explained by many people, numerous times, it seems that it is still nott understood by some.
What a shame that time must be wasted on this very simple FACT and the board cluttered by the inane, irrelevant, misunderstood, orthogonal posts of the intraday trading artifacts that are nothing butt a transient artifact of the way daily trades are done and reconciled during the trading day.
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