Nikodemo's,
"Essentially, in this NITE "short account", thefitstar reports that each night from around 11:30pm-2:30am...the account dwindles from around 5.3 - 7.3 Million, down to as low as 500 - 850,000 shares available to short. Now, around 6am to 8:30am each morning the account is "restored & replenished", day-after-day, to around 5.3-7.3 Million share figure (pre-market). Calls put into the trading desk at IB reveal that this is unusual as their accounts adjust in REAL TIME (as shares are shorted, the account shares are decreased and covering elicits the inverse effect) to accommodate supply/demand."
I do not know what type question you asked IB but you are assuming that the shorting takes place wen maybe none does. not knowing whose shares these are, the fact that they start and end the same implies that the unloading and reloading are shares coming from third party accounts that get refreshed the same way bids and offers are closed at end of day and refreshed at the beginning of the next.
"However, while watching the L2 trades go around that time I couldn't help but notice that NITE was consistently on the ASK & hardly ever on the BID. At first I thought they may have purchased a ton of shares prior to my observations and explained it all away as such. Although as time marched on, I saw more of the same for months on end. The Reg SHO lists and FTD's I saw later this past summer made me believe that NITE was responsible for them."
First, you do not know whether NITE is making a market or getting order flow from third parties. NITE is a market maker and the premiere Market Maker for penny stocks. Those receiving shares for stock promotion can be selling thru NITE and you have no way of knowing. Second, Just because you see MM's on the bid and offer does not mean they are getting the order flow. If you follow enough stocks you would notice that there are circumstance where a MM will sit on the Offer and at the end of the month report almost no volume. As for the FTD's, it was not NITE it was Long Fails and the level of FTD's was low when compared to O/S.
"Who is shorting this daily volume of around 3-6Million? Considering this now 8week tight-trading-range of $.04-$.05, the aforementioned rather-large daily "short" volume, the difficulties of selling/buying (shorting/covering) in a profitable manner in this trading range, the risks & sizeable costs (which are prohibitive in my view under these conditions) all point to a highly unprofitable venture"
You are making a great deal of leaps here that you can not support by any type of reporting. The short interest and FTD's do not support your argument. NITE is not legally allowed to make a market in the stock and if they were it would be picked up. If anything, NITE is going long at $0.04 and selling out at the higher prices when people like you buy the stock. They have the opportunity you do not because they still buy and sell unsolicited trades.
Bottom line, you and I both said a great deal but in reality, none of it can be substantiated but regulatory enforcement is in my favor as are FTD and short interest reports. And with that, this is the last post allowed for today by Admin restrictions.
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