N.A.S.D. Reports slight decline in short positions

The National Association of Securities Dealers reported yesterday that short interest in actively acted Over-the-counter securities in their domestic market in slight decline for the four weeks ended on 15 April.

A total of 264.1 million shares were briefly detained and not yet covered mid-April, he said, compared to 264.3 million shares in the period ending mid-March. The number represents the share of sales by 2279, to March, sales stood at 2,244 points.

The association also said that short interest in the assets under 1235 Over-the-counter securities that are traded in its automated supply, but not on the domestic market, totalling 37.7 million ’shares from mid-April. He presented a decrease of approximately 12.3 per cent of 43 million shares held early in March, 1189 securities attended.

In a short sale, an investor, the assumption that the declining stock price will be sold borrowed, in anticipation of redemption of an equal number of shares later at a lower price and thus gain. Different points of view of analysts

Some traders and analysts believe that a large Short-position rollover, because there is probably a cumulative strong belief that the market down turn. According to this argument, a big jump in the short position would also bearish.

But many other analysts argue that a large Short stubborn position is a sign for the stock market in the short term, finally, because the seller must purchase of stocks sold.

The value of interest rate short predictive indicator of market integration bullishness Plumpheit or has been questioned in recent years. This is because stocks sold short by arbitragers, who in many situations, including acquisitions proposed or under way, conversions of securities of a company, the rights of tenders, actions or distributions and splits the tenders. Strategies brokerage Ages

Other anomalies, it also exists. For example, a decline less active issues traded on Nasdaq may be explained as a result of various strategies by some brokerages that markets in these stocks.

Can also lead to distortions of the season. In December, for example, the figures in interest rates short term can be misunderstood strategies for tax deferral, the use of short sales.

Yet many analysts, short track market research sense of interest and opportunities to the screen, arbitration and other “noise” that distorted the figures.

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