Short Analytics Only 365k real volume and more than 53% of volume was shorting... Can't continue, and when this runs next time, it will RUN Not many selling, shares are scarce, and will be difficult to cover when we finally shoot back UP
Sentiment: Strong Buy
I have question regarding the stats from "Short Analytics". if you look at the total, short + long =100%. what does that mean? it appears to me that the "short" is really "selling" (as in sell vs. buy). Otherwise, how could "short + long = 100%"? how about those selling (not long) but with real shares (they are not short as in selling borrowed). Or am I totally confused?
PS. Here a quick question that may shed more light on why no to use the number blindly.
Was yesterday's volume solely one party buying and shorting to themselves in order to move the PPS? Was anyone else buying at all? Was anyone else selling at all?
The answer is... no one knows. Maybe someone bought all the shares someone else wanted to short or maybe no one else was buying or selling except 1 guy or maybe the answer is somewhere in between.
Short friction indicators are intended to try and interpret that, but they only shed another layer on top of a very vague number.
The total is the total volume of transactions. The short number is the number of shares actually shorted (borrowed, naked, or otherwise). A true 'sell short' transaction. The long number are all those transactions that were not a 'sell short'.
The FINRA site explains the data in much more detail in many documents. You just have to wade through it all to get a clear understanding.
That being said, those numbers must be taken in context to price action, overall volumes, and a bunch of other stuff to even think about gleaning something useful from them.
The exact same set of circumstances and numbers could mean drastically different things with the stocks environmental variables.
These numbers should not be used on their own to determine what shorts or longs are doing. Although sometimes it gets real obvious, like when we had that last dip to $32 on 100K volume per day and 50% was short day in and day out. Trying to lower the PPS while there isn't much buying interest maybe? LOL
Obvious things like that are rare.
According to Mikey short analytics is only a part of the daily picture. I've never really understood it. He tried to explain it one time that you also had to have other information from Finra that ties in with some kind of "friciton trades or something like that. It was wayyyy over my head though.
What good does it do to short 53% of today's volume when it produces no panic selloff or cascade of stop loss orders? Surely they have Level 3 and can see whether or not there are stops to trigger. How can a pitiful $0.40 decline be worth all that additional shorting?
Wow, that's nuts. They keep selling 100 shares all day. It's due time for the pendulum to swing the other direction. I wouldn't be surprised if there is covering before Tuesday because even they know that one hint of good news from the conference and they are toast.