CLSN on REG SHO List for 1/18 and Short-Sale Circuit Breaker List for 1/17 and 1/18
CLSN on Reg Sho list which means there are no more shares to short and we're looking at a huge gap up on data release (hopefully). Short sale Circuit breaker was initiated on 1/17 at 9:30AM and on 1/18 at 10:47AM. Shorting was not allowed after the circuit breaker kicked-in. Look at the charts for those dates and times and all you see is green. That should tell you something
"We believe it is appropriate at this time to adopt a short sale-related circuit breaker because, when
triggered, it will prevent short selling, including potentially manipulative or abusive short selling,
from driving down further the price of a security that has already experienced a significant intraday price decline, and will facilitate the ability of long sellers to sell first upon such a decline"
"will facilitate the ability of long sellers to sell first upon such a decline" - there was massive buying, not selling, when the circuit-breaker kicked in.
The explanation for the market action last week was that the deep ITM call buying, conversion, subsequent selling of huge block of shares resulting in stop losses being taken out as also the clown's degrade the next day was all to help short covering at lower prices. That theory would make sense only if the short interest actually goes down. If brokerages are not finding shares to borrow, it goes against that thesis.
Or are the smarter hedge fund shorts covering and the retail shorts jumping in at the same time, whose knowledge of thermodox tells them that it is a time released capsule?
Mick's take on the cascade - it can be posted here, so a lot of us can be benefitted rather than individual emails to a select few. Longs are in this together so any perspective sharing can help.
There is no permanent list. If a stock drops more than 10% the circuit breaker kicks in to allow long shareholders to sell ahead of the shorts. The shorts can only sell short on an uptick.
It only applies for the or the 10% down day. It's back to normal the following day.
RE Sho lists securities which have naked short sales where the brokerage fails to obtain the required shares within 5 business days or the required short position.
What it tells you is that the stock dropped over 10% on a couple of days and that there was some naked short selling.
It doesn't mean is that there are no more shares to short or that the stock can not be shorted going forward.