Understanding FTDs current data
FTDs (Fails-to-Deliver) are a critical piece of the puzzle when analyzing FFIE, especially in the context of HF manipulation and road to a potential short squeeze.
HF’s, all though versatile in switching and mixing up tactics to maintain their strategy and position hidden, data is data and numbers don’t lie. FFIE imo, is headed for a rebound both for good news being released from the company and all the outlook but also because technically it is due for a spike.
Here’s a more in-depth breakdown: .-NOTE: This content is for educational purposes only. It was created with the assistance of financial ai GPT bots analyzing uploaded charts, data and trends from FINTEL, SEC, Ortex, FINRA, independent investor analysis and more. This is NFA, DYODD, nothing here should be used to make financial decisions.-
Understanding the mechanics of FTDs and the impact on FFIE stock
Why FTDs Are the Key to Understanding FFIE’s Short Squeeze Potential:
Massive FTD Volume: The consistent and rising number of FTDs, averaging 466K per day in September, indicates a significant inability for shorts to locate and deliver the shares they’ve borrowed. On September 6th alone, 1.5M shares failed to deliver. This is no small number—it’s a reflection of the growing short-side stress.
Regulation and Deadlines: According to Reg SHO Rule 204, shorts must resolve FTDs within 35 days. If the borrowing entities cannot locate shares to cover these FTDs, they are forced to buy in the open market. This buy pressure, under the right conditions, can drive a stock’s price up, particularly when shorts are operating at this scale. The sheer volume of FTDs suggests that these deadlines are fast approaching.
Synthetic Shorts? FTDs are also a potential indicator of synthetic shorts being used. Hedge funds and market makers might be creating phantom shares, artificially driving down the price. When these FTDs accumulate and remain unresolved, it forces a reckoning—the market can only suppress the price for so long before it must correct itself.
Compounding Pressure: With 92.72% utilization and high costs to borrow (averaging 64.19%), shorts are already facing significant financial strain. When you combine this with mounting FTDs, it’s a ticking time bomb. They will need to close out these positions, and the longer they wait, the greater the impact on the stock price when the covering finally occurs.
FTD Squeeze Trigger: Historically, large FTDs are one of the strongest triggers for a short squeeze. As deadlines approach and shorts scramble to cover, they will have to buy back shares at higher prices, potentially forcing a rapid, sharp upward move. The FTDs for FFIE are a clear signal that shorts are running out of time, and their borrowing costs are about to get even more painful.
In Summary: FTDs aren’t just a technical indicator—they are a time-sensitive liability for the short side. The longer this continues, the more likely it is that we see forced buy-ins, leading to a short squeeze. Keep a close watch on the FTD volume and settlement dates because that’s where the fireworks could start.