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

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Anonymous's picture

Welcome to the real world figures!

look at shadowstats.com

Anonymous's picture

Companies participating in Work Sharing could skew that number. There would be no jobless claim, but the check would still go out. Unfortunately, I know more people who are laid-off than people participating in Work Sharing.

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".

ghostfaceinvestah's picture

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

McLuvin's picture

reminds me off....last week.

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!

Anonymous's picture

% Change since when?

gammaman's picture

Exactly same question I had...

Anonymous's picture

"There is only one side of the market, and it is not the bull side, or the bear side, but the right side"

- Jesse Livermore

McLuvin's picture

i like the left side.

Anonymous's picture

you want to explain this nonsense? figures seem idiotic

Anonymous's picture

TD, you say "the biggest, most orchestrated short squeeze in history." Agreed. Bernanke today says that the Fed is "winding down" emergency measures (Bloomberg). Right. So that when the next plunge comes he can (surprise!) rev up these measures; another short squeeze and "buying opportunity of a lifetime" would be created, and GS and the Boys will milk it for all its worth. Again.

Anonymous's picture

Not quite clear on the timeframe covered in that chart, but recall the big BofA and Citi preferred-to-common conversions likely resulted in a large amount of short covering of arb positions, and that was a lot of shares. In addition, a lot of the capital raises have been bought by shorts, resulting in more shares outstanding and lower short interest. Just some food for thought. The numbers are striking, but there are some plausible explanations for a portion of it. That and a lot of people wanting to get out of the way of the freight train.

Anonymous's picture

The numbers are not striking, they look retarded.

C has not been covered yet, who are you kidding.

Anonymous's picture

How do you figure? data is from 7/15 and conversions are just now underway.

Besides - Citi short interest 7/15 vs 6/30: 1.214bln vs. 1.198bln

further, you can't cover short shares with shares purchased in a secondary.

"just some food for thought"

Anonymous's picture

I hope some of the pension funds use this opportunity to lighten their exposure to equities but I fear they will double down instead.

Anonymous's picture

I believe Calpers just announced they want to double down on a number of investments including California real estate, junk bonds, Private equity, commodities, and more.

http://www.nytimes.com/2009/07/24/business/24calpers.html?_r=1

Anonymous's picture

Typical.

Anonymous's picture

I'm literally about to FU to the NYSE & NASDAQ forever. The more this BS continues the more the retail investor is going to pack up and go away and will not come back. I fucking hate the markets at this point.

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.

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.

Anonymous's picture

Computers were going overtime on keeping the rachet locked... nearly saw it smoking at one stage.... prevent the stops being triggered then mess about all day getting some new shorts and ping as usual end of day

Market can go to 15000 by end of next month now they got the hang of a bad day's earnings!

Anonymous's picture

This market is not about earnings, computers don't read balance sheets, nor look at yields, eps, p/e etc., all they do now is take that off the program trading list for the day to let the shorters think they have the upper hand.
Next day they will merely squeeze any overnighters out again when they add it back to the list.

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

Anonymous's picture

I fail to understand the market nowadays.

Market's up when oil's down - all headlines scream "the drop in oil lifted the market"

Market's up when oil's up - the same headlines shout "the energy sector pushed the market up"

Gordon_Gekko's picture

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

Anonymous's picture

Anyone just hear that lame ass argument by those evildoers
for HF trading on w/Maria a few minutes ago? "It creats liquidity" what a crock.
Maria-"but the individual investor can't do that ?!"
Evildoer- "yes but their mutual funds do."
BBBBBWWWWWWWAAAAAAAAHHHhahahahahahahahh !!!
What a crock of shit.

Anonymous's picture

seeing only -15.84% change, what defaults are you using Tyler? great stuff

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.

 

 

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.

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

StilesBC's picture

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

Anonymous's picture

as of July 15, it looks like he's going back to march.

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

Anonymous's picture

it should be since the last report, its biweekly.

numbers look wrong to me though.

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.

Anonymous's picture

what does tell you this is a short squeeze?
isn't it quite normal that shorts get covered on a large up-move? voluntarily?

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.

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?

 

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.

deadhead's picture

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

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.

Anonymous's picture

Crash to give obama presidency
Prop up to get Cap and trade passed...

Beautiful Goldman, beautiful job...

You should have had a trading revenue line on top of your Program Trading report....they only made about 7 billion on the collapse and subsequent reflation...but who's counting

Anonymous's picture

You gonna believe your eyes or what Commissar Durden tells ya.

LOBN

Lots of Bogus Nonsense

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