There are absolutey no shares avaiable to short. I have accounts at 3 brokerages plus contacted 2 others. None of them can find me shares. One of my brokers told me they will be calling in shares tomorrow. Someone must be caught naked.
Called TDAmeritrade and they have no shares available to short for ARNA or VVUS and it has been that way for a while.
Only ones who can short are those plugged into the system and can get around the locate rules. So that leaves HFT, Hedge Funds with co located equipment, B/D's, Clearing Firms and Market Makers. Everyone else has to locate shares to be able to short them. Nothing new here been this way for a long, long time.
You are correct sir. I even called TD Ameritrade and the gentleman who was my customer rep actually laughed. When I asked what was so funny he informed me that he had the same call numerous times in the past 5 trading days. NO shares to short. What does that tell you? Anyone who would short this at this level is just playing Russian roulette. At 10 or 12 with a tight stop I could see but you are gambling here. This thing could take off and break you.
You may be lucky there are no shares to short. All it takes is a group of funds to switch their atitude from short to long and you could be left speechless. I can tell you at some point you can count on it to happen...
Sentiment: Strong Buy
The fact that I could never find shares to short made me extremely cautious about going either short or long. Basically, the MM's have it locked up and can take it any way they like. The fact that you can't take a short position does not necessarily mean that they're going to move it down. It may mean exactly the opposite. Because if they took it up, as a short, you'd have no way to fight back. The question today was whether the MM's were selling/shorting @ 7.55 or buying. Since they didn't let it drop below 7.50 to take out the stops of the longs, I assumed that they were shorting it. Could be wrong.