Hi all,
Given the recent attention to short interest, short volume, short everything - I'm publishing this analysis about what my indicator does and does NOT do since I've already been getting a few questions about it.
Terminology:
Introduction:
Quandl supplies a daily total volume and short volume dataset for two main exchanges - NYSE & NASDAQ.
This indicator aggregates both of those so you have everything which is publicly and easily available via Quandl BUT and this is a big BUT:
** There are lots of other exchanges which are not included in this indicator, i.e. there are lots of other places that traders can open and close shorts outside of those two exchanges **
This indicator should be consider a sample of the market. A soft-indicator, not an exhaustive data resource.
Walkthrough:
This indicator has 3 main settings currently:
When I'm screening a stock in a potential short squeeze (Example GME, other great examples are KNDI, KODK, etc.) - what I'm looking for is:
Has the dilution changed since the last major squeeze event? (most squeezers are repeat squeezers)
What has the short volume been looking like lately?
What is the ratio of short volume to long volume lately?
Each of those settings on this indicator attempt to answer those questions and those questions only.
For instance, when using the Daily Short Volume indicator - I'm able to see the early squeeze around the 20 mark on GME and try to analyze further if there's potential for a re-squeeze (new shorts who entered at 20 get squeezed by higher prices etc.)
And when using the short volume ratio - I'm trying to predict how MUCH of the move can be attributed to short volume (opening or closing). In this case, it looks like no more than 25% was due to short volume on the NYSE / NASDAQ which is pretty significant compared to something like the KODK move in July 2020 which was pure long day trading on a small float with news catalyst.
VS.
Feel free to reach out with comments, ideas, questions, and more.
Hope this helps you find your Gamestonk before it happens next time.
Given the recent attention to short interest, short volume, short everything - I'm publishing this analysis about what my indicator does and does NOT do since I've already been getting a few questions about it.
Terminology:
- Short Volume = the number of shares opened *or* closed short in a given day.
(Unfortunately, this data does not exist intraday for retail usage from exchanges. If you want intraday, you WILL have to buy this for an extremely expensive monthly subscription.)
- Short Interest = the number of shares currently open which are held short against a specific stock / ticker.
(This is only reported by the exchanges twice monthly and has a two week lag - 2021 schedule here: www.finra.org/filing...stems/short-interest)
- Short Float = the percentage of shares currently open short / the number of shares currently float (float = in market circulation) in that stock.
Introduction:
Quandl supplies a daily total volume and short volume dataset for two main exchanges - NYSE & NASDAQ.
This indicator aggregates both of those so you have everything which is publicly and easily available via Quandl BUT and this is a big BUT:
** There are lots of other exchanges which are not included in this indicator, i.e. there are lots of other places that traders can open and close shorts outside of those two exchanges **
This indicator should be consider a sample of the market. A soft-indicator, not an exhaustive data resource.
Walkthrough:
This indicator has 3 main settings currently:
- Shs Outstanding
- Daily Short Volume
- Short Volume Ratio
When I'm screening a stock in a potential short squeeze (Example GME, other great examples are KNDI, KODK, etc.) - what I'm looking for is:
Has the dilution changed since the last major squeeze event? (most squeezers are repeat squeezers)
What has the short volume been looking like lately?
What is the ratio of short volume to long volume lately?
Each of those settings on this indicator attempt to answer those questions and those questions only.
For instance, when using the Daily Short Volume indicator - I'm able to see the early squeeze around the 20 mark on GME and try to analyze further if there's potential for a re-squeeze (new shorts who entered at 20 get squeezed by higher prices etc.)
And when using the short volume ratio - I'm trying to predict how MUCH of the move can be attributed to short volume (opening or closing). In this case, it looks like no more than 25% was due to short volume on the NYSE / NASDAQ which is pretty significant compared to something like the KODK move in July 2020 which was pure long day trading on a small float with news catalyst.
VS.
Feel free to reach out with comments, ideas, questions, and more.
Hope this helps you find your Gamestonk before it happens next time.
Comment:
Disclaimer: Not a financial professional or financial advisor. Any and all publications are opinion and not investment advice.
Comment:
I've been working on a better version of this indicator which can be utilized in a way similar to the charts available on shortvolumes.com
More info available here:
More info available here:
