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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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Fri, 07/24/2009 - 16:14 | Link to Comment D.O.D.
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.

Fri, 07/24/2009 - 16:15 | Link to Comment VegasBD
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!

Fri, 07/24/2009 - 16:23 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:25 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:30 | Link to Comment VegasBD
VegasBD's picture

hahaah hillarious!

Sat, 07/25/2009 - 17:02 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:25 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:50 | Link to Comment crzyhun
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.

Sat, 07/25/2009 - 17:04 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:51 | Link to Comment Danz Gambit
Danz Gambit's picture

great rack, and smart too!

she needs to get her resume over to cnbc pronto

Fri, 07/24/2009 - 17:08 | Link to Comment Takingbets
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!

Fri, 07/24/2009 - 17:23 | Link to Comment texpat
texpat's picture

The Californian Sarah Palin.

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

Fri, 07/24/2009 - 17:28 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:45 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:40 | Link to Comment joann
joann's picture

Was waiting for that part in her speech:

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

Fri, 07/24/2009 - 20:36 | Link to Comment D.O.D.
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....

Fri, 07/24/2009 - 23:58 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:17 | Link to Comment Prof Gulliver
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.

Fri, 07/24/2009 - 16:20 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:21 | Link to Comment mdtrader
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?

Fri, 07/24/2009 - 16:28 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:40 | Link to Comment whacked
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 ..

 

 

Fri, 07/24/2009 - 17:16 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:22 | Link to Comment TraderVix
TraderVix's picture

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

Fri, 07/24/2009 - 16:23 | Link to Comment curbyourrisk
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!

Fri, 07/24/2009 - 16:27 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:38 | Link to Comment Woodshedder
Woodshedder's picture

No doubt. It has been an awful week.

Fri, 07/24/2009 - 16:46 | Link to Comment Anonymous
Fri, 07/24/2009 - 21:45 | Link to Comment dark pools of soros
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??!?!??

Fri, 07/24/2009 - 16:47 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:01 | Link to Comment andy55
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.

 

Fri, 07/24/2009 - 21:49 | Link to Comment dark pools of soros
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

 

 

Sat, 07/25/2009 - 17:09 | Link to Comment Anonymous
Sat, 07/25/2009 - 08:41 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:31 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:51 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:35 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:12 | Link to Comment Steak
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.

Fri, 07/24/2009 - 17:33 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:20 | Link to Comment bbtrader
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. "<<

 


 

Fri, 07/24/2009 - 19:08 | Link to Comment Anonymous
Fri, 07/24/2009 - 19:30 | Link to Comment bbtrader
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

 

Fri, 07/24/2009 - 22:14 | Link to Comment bbtrader
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

Sat, 07/25/2009 - 17:23 | Link to Comment Anonymous
Sat, 07/25/2009 - 20:57 | Link to Comment bbtrader
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...

Fri, 07/24/2009 - 16:51 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:56 | Link to Comment cougar_w
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

Fri, 07/24/2009 - 18:21 | Link to Comment Anonymous
Sat, 07/25/2009 - 17:27 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:29 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:32 | Link to Comment Anonymous
Sun, 07/26/2009 - 13:55 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:32 | Link to Comment deadhead
deadhead's picture

this current reinflation of these piece of shit equities is going to end just like the dot com bubble.

 

today's action brings back memories of greenspan's "irrational exuberance".

Fri, 07/24/2009 - 17:24 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Reminds me of fall of 2001, classic post-bubble behavior in the markets.

Fri, 07/24/2009 - 18:01 | Link to Comment McLuvin
McLuvin's picture

reminds me off....last week.

Fri, 07/24/2009 - 18:01 | Link to Comment McLuvin
McLuvin's picture

...of...

Fri, 07/24/2009 - 19:19 | Link to Comment Dixie Normous
Dixie Normous's picture

I thought the same thing myself but I don't think rally off the bottom was as vicious as this one.  The S&P didn't rally 10 days in a row. 

Also, if you look at the late 01-02 slow grind, low vol rally, it did not end very well at all.

This move over the last 10 or so days is bubble-esque.  And probably still has legs and maybe we'll NEVER see another 1% pullback again. EVER!

Fri, 07/24/2009 - 16:36 | Link to Comment Anonymous
Fri, 07/24/2009 - 20:06 | Link to Comment gammaman
gammaman's picture

Exactly same question I had...

Fri, 07/24/2009 - 16:38 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:02 | Link to Comment McLuvin
McLuvin's picture

i like the left side.

Fri, 07/24/2009 - 16:42 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:47 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:48 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:51 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:09 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:48 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:53 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:25 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:50 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:03 | Link to Comment cougar_w
cougar_w's picture

Go ahead and leave. They don't want you. Oh sure, they'll take you in the haul, but what they are after are the pensions.

They intend to drain them dry. That wad of money needs to find a new home before the coming slug of retirees start looking around for it.

Fri, 07/24/2009 - 16:50 | Link to Comment Dont Taze Me Bro
Dont Taze Me Bro's picture

In spite of flurry of bad earnings released today by some of the biggest companies in the US, the market managed to make another yearly high. How is this possible? A 29% drop in earnings by MSFT would have dropped Nasdaq COMP by 100 pts a few years ago.

Fri, 07/24/2009 - 16:56 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:09 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:11 | Link to Comment cougar_w
cougar_w's picture

They are creating ups and downs so their computers can play with them. There is probably some kind of warfare happening between opposing algos out there. Many opposing teams playing a hyperdimensional board game. Like a game of Go; showing some weakness, drawing the other guy in, then closing him off and squeezing him to death. Go is just a game, but the actual play is brutal.

Same here. Just a game. Losing a stone, picking up a side, feint to the corner. Skimming. An intellectual exercise in destroying the world.

cougar

Fri, 07/24/2009 - 16:51 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:46 | Link to Comment Gordon_Gekko
Gordon_Gekko's picture

Price action dictates the headlines, not the other way round.

Fri, 07/24/2009 - 16:51 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:55 | Link to Comment Anonymous
Fri, 07/24/2009 - 16:57 | Link to Comment lizzy36
lizzy36's picture

Every since the Russian crisis/LTCM event of Sept 1998 it has been groundhog day.

Same play book, same outcome. 

At the end of 11 years you are @ the same place you started.  The only thing that has changed is power has become highly concentrated (and thus unchecked) in a couple of players.

 

 

Fri, 07/24/2009 - 18:11 | Link to Comment McLuvin
McLuvin's picture

i think the parallels between this market and the Russian market after '98 are striking.  the swiftness of the rebounds are very similar.  it would dictate taking a bullish stance instead of a bearish one on the assumption that we saw a panic and it's over, not the beginning of a depression.  just a thought as i resist the temptation to fight the tape.

Fri, 07/24/2009 - 18:17 | Link to Comment cougar_w
cougar_w's picture

This would have been the point all along.

The failure of short-term thinking for immediate gain was that we gave the Republic to the few left thinking long.

Long as used here is a word that means 20 years. Though if I was being very pessimistic, it might mean 100 years. There are famlies around that think that far into the future. We are children playing in a sandbox compared to them. But they encouraged us to "live for the moment!"

We never had a chance.

cougar

Fri, 07/24/2009 - 17:01 | Link to Comment StilesBC
StilesBC's picture

If I understand this correctly, those are the short interest changes since Jul 15? 

Fri, 07/24/2009 - 17:12 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:14 | Link to Comment bbtrader
bbtrader's picture

Didn't short interest become quite high in late May/early June? In any case, best thing to do is watch the weekly chart and wait for a signal and then short, the recent move down was premature, money is playing the weekly, not daily chart

Fri, 07/24/2009 - 18:13 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:02 | Link to Comment JohnKing
JohnKing's picture

Politically expedient. If some were to get busted for this it was to save the system from short sellers. Heroes I tell ya, freakin  heroes.

Fri, 07/24/2009 - 17:02 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:22 | Link to Comment Dont Taze Me Bro
Dont Taze Me Bro's picture

Here is a question for people with brokerage back office operation experience.

I am wondering if it is possible for the FEDs to intervene directly in the equity markets without leaving any hard evidence.

For example, would it be possible for the FEDS to up build a massive spoos position, let's say 30-60K etc, without leaving a footprint? How hard would it be to hid that? Wouldn’t some low level employee at the CME see it and spill the beans?

Or maybe they could use over-the-counter instruments to achieve the same goal? Like sell crap load of OTC PUTS to Goldman Sachs for peanuts, and have them buy spoos against the puts? But then, the position size would show up on GS's books. So its hard to hide there too.

Fri, 07/24/2009 - 17:27 | Link to Comment Gwaihir
Gwaihir's picture

Wouldn't it be easier for them to overwrite the ticker tape directly at the exchange? No socialist country ever needed a stock exchange for valuation purposes, so why the US?

 

Fri, 07/24/2009 - 17:45 | Link to Comment Dont Taze Me Bro
Dont Taze Me Bro's picture

Yes, that’s true too, though that method is much more riskier in terms of exposure, because there is a chance that some disgruntled exchange employee learns about the scheme and spills the beans. I always suspect that if a government agency wants to do something bad, they'll do it like the CIA, operate through phantom companies, etc.

Fri, 07/24/2009 - 17:28 | Link to Comment deadhead
deadhead's picture

take a look at  TD's State Street article that discusses the possibility of the Fed running an account through them.

Fri, 07/24/2009 - 17:45 | Link to Comment Dont Taze Me Bro
Dont Taze Me Bro's picture

Awesome thanks. Do you happen to have the link to the article?

I just searched this site for "State Street" and got a lot of results. It's cool if not, I'll probably just go through them later and find it.

Fri, 07/24/2009 - 21:10 | Link to Comment Anonymous
Fri, 07/24/2009 - 21:11 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:27 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:27 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:47 | Link to Comment Anonymous
Fri, 07/24/2009 - 20:37 | Link to Comment Arm
Arm's picture

You stupid prick.  Do you even know what you are looking at?  He is not "telling" you, he is showing you a print screen from a Bloomberg terminal that backs his claim.  

You can argue parameter or how it is calculated, but unless you are accusing TD of fabricating the image, then he is not lying.

You on the other hand, have absolutely no idea of what you are talking about, or you are purposefully dropping disinformation

Fri, 07/24/2009 - 17:53 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:36 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:49 | Link to Comment Anonymous
Fri, 07/24/2009 - 17:57 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:04 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:18 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:24 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:32 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:43 | Link to Comment SloSquez
SloSquez's picture

Look, don't be short by 2:00.  OK!  I understand what TD is saying.  However, it's quite obvious to short right now is extremely dangerous.  The pain will far outweigh gain.  I don't make the rules, I just try and profit from them.  Adapt or die.  I am not going to argue the correctness of the rules.

Fri, 07/24/2009 - 18:49 | Link to Comment Anonymous
Fri, 07/24/2009 - 18:59 | Link to Comment Anonymous
Fri, 07/24/2009 - 19:15 | Link to Comment Anonymous
Fri, 07/24/2009 - 19:06 | Link to Comment Anonymous
Fri, 07/24/2009 - 19:13 | Link to Comment Anonymous
Fri, 07/24/2009 - 19:45 | Link to Comment Anonymous
Fri, 07/24/2009 - 20:10 | Link to Comment Anonymous
Fri, 07/24/2009 - 20:28 | Link to Comment Anonymous
Fri, 07/24/2009 - 20:59 | Link to Comment Anonymous
Fri, 07/24/2009 - 21:23 | Link to Comment Tyler Durden
Tyler Durden's picture

thx

Fri, 07/24/2009 - 23:32 | Link to Comment Anonymous
Sat, 07/25/2009 - 00:57 | Link to Comment Anonymous
Sat, 07/25/2009 - 02:25 | Link to Comment Gwaihir
Gwaihir's picture

two mark this feedback as junk?? Well as always, if the data is too good to be true for your case, the data won't be true. Blind followers do not need personalities to "junk" any feedback, they follow anything - like sandals. TD likes to post first and ask questions later ... blind followers run the risk of embarrassing themselves. Junk or educate yourself.

Sat, 07/25/2009 - 00:40 | Link to Comment Comrade de Chaos
Comrade de Chaos's picture

WOW,  new data set looks even more significant! Now, TD you'll make a good general. And as of some of those arrogant anons, hopefully for their own sake they will grow out of it.  

Sun, 07/26/2009 - 05:05 | Link to Comment Anonymous
Sun, 07/26/2009 - 16:41 | Link to Comment Anonymous
Sun, 07/26/2009 - 17:26 | Link to Comment Anonymous
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