I am thinking the shorts did the 1 million and then re-shorted. They were churning huge amounts of shares on Monday by providing support in the upper $4s and re-shorting in the lower $5s.
We appear to have hit a price target the shorts were aiming for (they've been calling for $3-5) on their twitter feed. Some of them appear to be considering going long here believe it or not, as one of their sites encourages people holding to hold and everyone else to take profit on the short and wait for a signal. That site claims to have held a core short position since the $13s,
Last two days short volume has been fairly light on the exchanges although I do not have full details of the dark pool trades (there have been a few) so I am not sure if the shorts transacted there.
I can tell you though that short margin interest has been going up, over 4.5%/annum right now, and there are currently 0-75k shares free for shorting, down from over a million shares free early last week. In English, the shorts extended their position. It is looking like they have been throwing the kitchen sink at it to keep the stock from rising so as to "sell" large investors on this price range. They used over 1 million shorts on Friday and another 300k or so on Monday. They tipped over the cow and have been working to keep it from getting back up on its feet.
We have some ugliness on the stock (damned management), the short monkey on our back will probably lighten up up starting next week - do not expect $7 yet though.
Google Queries: Jordan Terry, Nigam Arora, David Own. FINRA SHO May 2013 Daily
Short Interest, bi-monthly, on Nasdaq site.
Daily Short Volume on FINRA Site - Google "FINRA May 2013 Daily SHO" - Gives you aggregate market data for NASDAQ. These reports now differentiate between market making (exempt) shorts and real shorts (non-exempt)
"Daily Short Volume BATS" - they will do one step better and offer the details of every short transaction, how many shares, what time ,etc, posted end of day after market close.
Other exchanges, like ARCA and ISLAND also offer info.
There is also a FINRA Report showing ALL Short transactions from prior months, so on May 1, 2013, the full Monthly Short Transactions file for NASDAQ covering the March 1-31 period was released. You can buy the Daily version (published after market close) of this if you pay $500/mo and subscribe to it.
Google "Monthly SHO TRF". Maybe you can find a free way to access it, they are being prickly about releasing it without fees.
so you are saying that the shorts have been increasing their positions at this level? that would truly make for a very volatile future in prices. If the shorts have mis-calculated and there are buyers who are willing to buy aggressively on very large blocks, the shorts will have to reverse course. i still think that the horrible earnings report justified a major sell-off and that the stock wont move up much for a while, but i have been wrong on the stock price movement in the past.
The shorts have been churning the stock to paint a high volume picture valuing the stock at $5, to convince large inst shareholders this is the new market price. Institutional shareholders tend not to be impressed by a single trade of 100 shares at $5 when the previous day was at $7.
Volume is easy, subtract out the NASDAQ NLS and BATS Volume (as well as other exchanges like Island) from the total volume reported from consolidated tape. How much of that is short volume is impossible to determine, the whole point of a dark pool is to not disclose participants - form large funds to shorts.
TSLA up 27%, GMCR +15% pre-market, the shorts are crawling all over themselves trying to get out. That is the way it was supposed to work with zagg, just grates on me more every day the way Hales handled this thing. Thanks for all the background you provide on this one, by the way, much appreciated.
Thanks for the update. Been here and long for a few years (Back in the 2s). Sold lots of covered calls until premium dried up. Always appreciate your clear communication and insight. Thank for the effort.