Dark Shorts - epsm-api

The Dark Pool off exchange Short position on the market maker side is reported by sell-side companies to cross trades between two counterparties.

OTC Shorts or Dark Shorts are of another kind, Brokers and Market Makers are by law obligated to report their “Naked” shorts. Short positions or either “Naked” or “Natural”, when they are Natural the broker is selling to a buyer and owning the shares. When they are “Naked” the Broker does not own the shares and still sells them short.

These “Naked shorts” are sold to Asset Management Companies and Hedge Funds (Buy-side firms) which means that these firms are “Long” or “Buyers” of the stock.

These “short sales” are viewed as a positive indicator because they represent purchases of institutional investors, meaning Real Buys from major Buy-side firms.

An increase in the Dark Short volume over the average volume traded 20 days is a potential major “Bullish” signal. Showing us that Hedge funds and Buy-Side firms are buying the stock off-exchange in size.

Dark pool short: The level of Naked Short positions traded outside the exchange from Market makers and brokers reported to authorities everyday compared to the total volume traded at the exchange. Reading it the other way, the Buy-Side and asset management firms are long the stock when the market makers are naked short. So the higher this level the more Major asset manager are long the stock.

DarkP Percentile: Dark Pool Short Percentile over the last year.

DarkShort Signal: DarkP Signal is telling you if the Price slope 10 days is going in the same direction than the Dark Short 10 Days slope. If it is the case they are In Sync , which means the price trend is supported by institutional flow. Otherwise they are in Divergeance which usually signals a turn around meaning for example the stock is going higher but institutions has abruptly stopped their buying.

DarkShort Slope: Dark Short 5D or 10D Slope