Lack of Short Orders on NYSE

[Billy Valentine]

Have any NYSE tape readers out there observed fewer short orders following stocks down on the open book? It seems to me there have been fewer short sellers since the start of the year. Also, has anyone heard of any different methods that daytrading firms are using to get around the downtick rules?

Thanks

 

[Billy Valentine]

Feel free to speak up if you haven't noticed a difference. That way I'll know it's just me.

 

[bestfriend]

How would you know it's a short and not a "sell-plus" order?

 

[mschey]

Because the specialist rips you a new ahole on ss orders.

 

[Billy Valentine]

Quote from bestfriend:

How would you know it's a short and not a "sell-plus" order?

There's no way to know for sure. I'm just not seeing large orders follow stocks down one tick above the last trade. I'm curious if anyone else has made a similar observation, or if it's just me.

 

[ocupashnltrader]

You wont see this as much because institutions are not stupid. That style for daytraders has been done for years. When you play poker do you show the person sitting next to you your cards? When you do show someone your cards it usually means the hand is over! Word of advice.....look for a new strategy stepping shorties is the past!

 

[Steve Tvardek]

I still see them frequently, but they certainly arent what they used to be.

Quote from Billy Valentine:

Feel free to speak up if you haven't noticed a difference. That way I'll know it's just me.

 

[independenceair]

try checking out index futures open interest % short and long

 

[Steve Tvardek]

What does this have to do with the original posters question?

Quote from independenceair:

try checking out index futures open interest % short and long

 

[Billy Valentine]

Quote from Steve Tvardek:

I still see them frequently, but they certainly arent what they used to be.

I agree. My observation is that they aren't what they used to be even 5 weeks ago. I suspect that one or more of the major daytrading firms are using more innovative ways to get around the uptick restrictions, thereby using straight market sell orders (not short sell orders.) The problem for me is that this diminishes the edge of using conversions to get short.

When did you first notice fewer short orders? Also, have you heard of widespread use of any new hedging techniques traders are employing to short on downticks?

Thanks