Market Rips, Short Interest Plunges

Tyler Durden's picture

This is so much more than just a short covering rally. Oh wait, it's not. 72.19% drop in Short Interest across securities, compliments of stock loan-cum-TARP bailout recipients. So you see, if you are a taxpayer, who believes that fundamentals are more critical than an artificially inflated market compliments of the biggest, most orchestrated short squeeze in history, you got Got by the same people you bailed out.

Update: Apparently Bberg had not completed filling its data at time of posting. We apologize for Bloomberg not having the perspicacity and alacrity of a 10 million SPARC turbo cluster. The end result: 21.05 billion shares short at 1.72% of float. The odd discrepancy is the increase in short-interest on NYSE-issued securities. Any readers who have an idea what is going on here, please chime in.

Nonetheless, below is the trend chart for the % of float as most recently reported by Bloomberg. If this data changes in 24 hours, an update will be posted.

hat tip JB

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D.O.D.'s picture

I've been gettin got for ohhhh so long. Even better, try calling your congresional representitives to discuss your concerns about this and see how quickly you are, ever so politely, dismissed as a quack with an axe to grind.

VegasBD's picture

Ms North Carolina studying economics now?

http://cfecon.blogspot.com/2009/07/how-to-solve-all-of-californias.html

 

Great Video. Santa Cruz now has the key to fix all of californias economic problems!

Anonymous's picture

Um, excuse me. "Ms North Carolina"? I don't think so. She's pure California.

Anonymous's picture

Best video of the year...check out what I posted in comments...

VegasBD's picture

hahaah hillarious!

Anonymous's picture

@14439
"check out what I posted in comments" <--- errr like isn't that what you just posted inn comments?

Anonymous's picture

Best video of the year...check out what I posted in comments...

crzyhun's picture

Our future..right there before our eyes. This is CA education at its best.

Also, jailbait, if not a day over 18.

Anonymous's picture

@14483
bait? you are kidding right? you are the only bait: troll

Danz Gambit's picture

great rack, and smart too!

she needs to get her resume over to cnbc pronto

Takingbets's picture

Yep, it looks like she would have a good chance at getting Michelle Cabrera's spot. Watch out Michelle, this girl just might take Danz advise!

texpat's picture

The Californian Sarah Palin.

"...like the food is free, right, so we can sell it at the farmers' market."

Anonymous's picture

The Geithner, Summers, Bernake Cali bailout plan as expalined by Bair.

Anonymous's picture

...chinch bugs. You know...

...manganese. A lot of people
don't even know what that is.

Nitrogen....

joann's picture

Was waiting for that part in her speech:

We should water crops with Gatoraid, cause it has electro lites.

D.O.D.'s picture

MUWahahahahah ohhhhh, whew.... that was a good laugh... and being a native Californian... now I'm gunna cry... and people wonder why I think the entire world is full of morons....

Anonymous's picture

rotflmao.....you could not make that up...was it
an audition? was it really at a studio? did all
of her brains melt into her tits??

Prof Gulliver's picture

New rule: You can only sell a stock for a higher price than you paid. Stocks must go up every day. All down days are now illegal.

Anonymous's picture

i shorted yesterday. just bought the DOG. ouch

mdtrader's picture

The first stage of any bull is short covering. If the market can't go lower when MSFT and AMZN are minus 8% for the day then when can it?

Anonymous's picture

When Somali pirates sink some of GS and DB oil tankers in storage hanging outside of Singapore? Oil up, good for recovery. Where would the market be if oil was at 50, 40, 30, 20.

H

whacked's picture

"oil tankers in storage hanging outside of Singapore"

 

Yes second time in two months and there are a lot of tankers moored in the strait ..

 

 

Anonymous's picture

the first stage of any bull market is short COVERING.... not short CAPITULATION...

shorts capitulate at the TOP of the market DUH DUH DUH

TraderVix's picture

Went all cash several weeks ago. Smell ya later, S&P, at sub 750.

curbyourrisk's picture

Yeah...but once the short interest goes to ZERO....what is left?  What can they do then????

If something bad were to break...with no shorts IN THE MARKET, just think of the velocity of the crash.

 

It could be epic.......would so love to see GS get crushed.

 

Hey CNBC.....we are all Tyler Durden!

Anonymous's picture

that's exactly what i thought, and precisely why my shorts have been so unprofitable. Needless to say, i've had to cover at substantial losses. Right now, if GS listed a target of 1300 S&P by end of year, I would not try to short against it.

...ahh, it's been way to long of a week.

Woodshedder's picture

No doubt. It has been an awful week.

Anonymous's picture

Same here. I covered at a substantial loss. I am out of the market. Just going to put money in as CDs in my local credit union, after checking out their soundness. Laddering CDs is not sexy, but when a market is clearly manipulated, fundamental analysis and investing is out the door. Enough of my money has gone to GS. From now on, just work, keep my job, be extremely thrifty, save, and invest in myself.

dark pools of soros's picture

there are plenty of plays out there...  made 13% the last week.  just missed over 30% since i bailed out of SPWRB before their earnings...  who'd thought a bankrupt state could produce such a green shoot??!?!??

Anonymous's picture

take out the stops to go up, take out the shorts to go
DOWN !!!

andy55's picture

I'd be curious to hear when you shorted... I'm guessing last week when we were near 870 and fading?

Like any good zh-er, I'm bearish but also like a zh-er, I'm conscious of the invisible hand being not so invisible and having a GS arm attached to it.  For that reason, I decided not to short.  I've been sticking with mostly cash, silver bullion, and some seculars/defensives that have been either catching part of the up move or will catch some money rotating into defensives as it gets scared out of the beta names.  But god knows how this story is going to end.

Love or hate Cramer, but one of his sayings is solid gold: diversification is the only free lunch.

 

dark pools of soros's picture

seriously - bear or bull you have to be quick in this churn market..  i keep making money shorting BAC but then i jump and go long on anything I've been watching hit their low range

 

its fast food trading..  sucks but you can make quick bucks

 

 

Anonymous's picture

"you have to be quick in this churn market"
...nothing that a little HFT won't fix, come on now! get with the action.

Anonymous's picture

similar story to me, was heavy duty short, and at 870 i held tight, but since that i got CRUSHED, demolished....i had a ton of exposure and margin called outa half of it thursday morning...

they are all a bunch of fucks

Anonymous's picture

Yes, that is true, a lot of politicians think shorts are evil, but they find out the bad companies and also help to slow a fall.... as they profit take and at the bottom will help to fuel a sharp rebound as they close out.
But tell that to those that poke and prod and interfere with normal market functioning!

They don't seem to care that they are promoting another bubble yet again... Fed and the rest AKA bubble blowing machines
You just have to look at valuations and earnings to see this is now worse than the nasdaq bubble already.

marketwatch proudly states that biggest winning streak since 2000..... ha ha, just says it all, bubblemania has yet again been let loose and promoted by the FED

Anonymous's picture

I was against short selling in the past. At least I thought I was but later to find out that I was more like against unfair trading practices. You are right in that shorts provide a legitimate function. Without the shorts it seems unlikely any major scandal (i.e. Enron, etc..) would have been uncovered in a timely manner by any gov't agency. Seems it's always the shorts doing the exposing.

Anonymous's picture

You should be able to test this theory next week in the Materials, Energy and Utilities sectors, where the short interest is at negligible levels at this point. I'll be watching that myself.

Steak's picture

I've seen this movie before.  The market can go up when energy/materials lag if tech/pharma get squeezed even further and financials just stay neutral.  I believe the highest short interest is in tech right now, according to that chart.

Anonymous's picture

Not saying the whole market will not go up. I'm saying that if the theory about this being purely a short-squeeze rally that will end as soon as the short interest is all out, then we should see no further increases in energy, materials and utilities. If that holds, then when the remaining tech and financial shorts are driven out, the whole market would also come down.

I personally think that it can keep going up even after the squeeze ends. It doesn't matter what people who care about fundamentals think anymore. With the dominance of HFT, the market can work as a ponzi scheme for an indeteminate amount of time - or until the big boys decide it's time to go the other way. Everyone else's opinions make no discernible difference in this exercise "price discovery".

bbtrader's picture

Took this from technical shop Lowrys, it's a snippet of this weekend's report:

>>"The rally from the March lows has consistently conflicted with the probabilities drawn from our history since 1933.  For example, this is the first time in 76 years in which an almost five month rally has occurred on diminishing volume.  This is also the first time that such an extensive rally has occurred with our Buying Power Index dropping to new lows. "<<

 


 

Anonymous's picture

bbtrader....I do like the piece of information you posted. If you do not mind, could you specify the link, I would like to see that web site...thanks!!!

bbtrader's picture

http://www.lowryondemand.com/

 

i should add that 1. i've access to the site via someone else, and that a subscription is pretty expensive; and 2. the weekend report also has stated some positives regarding recent advance/decline (both straight up and OCO) data, which is the basis for their analysis.  in any case, they seem to be pretty confused about recent market action as their buy and sell signals haven't worked so well during this rally

lowrys is purely supply/demand analysis so in ways it's different from momentum analysis which is what i do

 

bbtrader's picture

http://stockcharts.com/h-sc/ui?s=$SPX&p=W&yr=4&mn=0&dy=0&id=p17826270561&a=173780901

 

see attached; also, fibo retracement proponents will say, we've yet to get to 38.2 retracement (around 1000-1015), so that's certainly where the S&P 500 seems to want to go - before the next leg lower; thus, better to let the bulls run this up before going short

Anonymous's picture

I'm with you BB
this marquette is a willow-wisp: now u see me now u don't. The hard part is when? Like many hereabouts I left the market weeks ago.

For me there's been this disquiet now for... oh... since about 1987, that for some reason wages and salaries were not keeping up with inflation, well they were but for some reason inflation wasn't keeping up with inflation, kinda like jobless aren't what they seem, anyway it became clearer and clearer over time that expansion was being funded with ever-increasing debt. How could it be any other way when ordinary folk were getting better loans but no cost-of-living increases.
Oh how retr0grade (sic) I feel. We lives and we learns.
I shoulda paid my workers more.

Now where was it again that I should hide my assets?

bbtrader's picture

Your 2nd paragraph well, bingo...

 

About the markets, as I've said I work with a momentum model and the run up from March has worn down some (despite the recent ultrabullish media talk); but it has been strong even as volume has shrunk, so we should have a rousing 4 weeks a coming - at least my volatility measuring stick is telling me so

 

Let's see, buy low denomination Iraqi dinars (1158 $IQD = 1 $USD) or platinum - hey, the Dow auto index is up over 150% from the March low, that's telling us something...

Anonymous's picture

GS has already offloaded the majority of their holdings onto the institutional investors. The institutional managers do not care, since it is not their money. Next quarter's trading numbers for GS are going to look awesome. The market will not go down, because the institutional investors will not sell. Why should they? They are long. So the market is going to go up without a doubt until October when GS reports. In October, GS is going to engineer a takedown of the market, once they are short, and then make profits on the way down, and cover and drive the market back up for a banner blowout 2009! Lather, rinse, repeat. Financial crisis, what financial crisis?

cougar_w's picture

It's like riding a swing. You pump on the way up AND on the way down. The swings get wider and wider. Eventually you either overshoot and fall off (ouch) or else you hit it just right and can keep the ride going all day.

The idea here is velocity of money. Up-and-down is still moving, even if it isn't moving anywhere in particular. Even if it's just sloshing back and forth in a bucket. As the money moves in a predictable way (because you are pumping it according to a plan) you can skim a bit off each leg of the trip, either up or down.

The money accumulates where someone wants it. Does it ever rejoin the system? Don't know.

In an end game, it doesn't NEED to rejoin the system. It is INTENDED to rejoin the system. The system is played out. You pull the money out and hang onto it until the next game can be dealt. Nobody alive today knows what that will look like for sure, but I think a few people are playing their cards already.

I ain't one of them, is all I know for certain.

cougar

Anonymous's picture

At some point the markets have to go down otherwise GS will not be able to actualize their profits, and pay their people. Given the FED backstop, and the 12Billion through AIG, they and the other Wall Street behemoths use investor psychology to determine the capitulation points for bears, and smack them down. In a bear market, killing shorts is one of the surest ways for the GS types to make money.

Anonymous's picture

you do realize hat what GS gains the institutions lose....
it's not like GS lives in a vacuum, unless og course you refer to our heads.

Anonymous's picture

Read "millions Wait for Delayed Jobless Checks" at MSN.com

States and FED cannot keep up with the checks.

Looks to me it got worse??? Our govt figures only showed an uptick in unemployment, yet MSN.com says 15 million jobless checks go out, not the 6 million unemployed the govt says.

15 million = 22% unemployment.