Misinterpretation Risks
OTC Markets has issued guidance emphasizing that FINRA's Daily Short Sale Volume data can create a false impression of overall short selling activity. Because the data is not consolidated with exchange-reported trades, it only captures a portion of the market's activity.
Analytical Best Practices
Investors are cautioned against equating daily volume spikes with an increase in total open short positions. While a spike in daily short volume indicates heavy selling pressure for that specific session, it does not necessarily reflect a long-term bearish trend or a build-up of open interest. Analysts should always cross-reference daily volume with official bi-monthly short interest reports to gain a more accurate understanding of a company's short-selling profile.
Signal data sourced from OTC Markets. This post is an original analysis prepared by The Forensic Ledger from publicly available data. Not investment advice.
Not investment advice. This is original reporting and analysis prepared by The Forensic Ledger from publicly available data. Nothing here is a recommendation to buy, sell, or hold any security. Always consult the original source and a licensed professional. See our full disclaimer and source-citation policy.