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Most Shorted NYSE Stocks: Citi Shorts Plummet As SPY Becomes Most Shorted Security
Our speculations that the SPY is increasingly used as nothing but a broad market hedge by asset managers, which are terrified to short individual single names in pair trades over concerns of short squeezes and forced buy-ins, has been proven: as of the end of November, the SPY, for the first time dating back to the start of our data, and possibly ever, has become the most shorted security on the NYSE, at 294.1 million shares short. That this has happened just at the time when the market hit a new 2010 high is not surprising: as single names melt up, hedge funds offset long risk by selling SPY in droves. Perhaps just as notably, the short interest in Citi, which had long stayed flat at around 400 million shares, has plunged by almost 30% in the last two weeks of November, and has dropped to 293.6 million shares, behind the SPY in terms of total shorts. Yet what may be the most curious datapoint is that the shorts outstanding as a percentage of float in the KRE ETF (the KBW Regional Banking ETF) have exploded from 13.2x to 24.6x! This means that there are 24.6 more shares short this ETF than there is daily volume. Should there be a forced squeeze in KRE, the intraday stock price will likely make the Volkswagen short squeeze seem pale in comparison.
The chart below shows the progression of the top 10 most shorted stocks over the past 2 months. While the short interest in C and F has dropped, most other names have seen their short interest remain relatively stable.
Stepping away from the most liquid names, note the dramatic surge in short interest in some of the less than HFT favorites: these are all names that have at least 8x more shorts outstanding than their Average Daily Volume, and are all prime candidates for the mother of all short squeezes.
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Out of curiosity, which hedge funds are using SPY to hedge? I cannot recall of any 13-F filings on ZH which show large short SPY holdings.
Number of shares shorted means little.
Best to pay attention to the % of the float sold short.
RBCN Rubicon Technology Inc Nasdaq 60.53% 17.23M 22.94M Semiconductors BPI Bridgepoint Education Inc NYSE 56.66% 17.25M 52.22M Schools GAP Great Atlantic & Pacific Tea Co NYSE 49.23% 31.29M 56.28M Retail (Grocery) PWER Power-One, Inc. Nasdaq 45.45% 85.52M 106.67M Electronic Instruments & Controls ATPG ATP Oil & Gas Corp Nasdaq 41.90% 44.43M 51.27M Oil & Gas Operations NILE Blue Nile Inc Nasdaq 40.82% 14.22M 14.39M Retail (Specialty Non-Apparel) CTCT Constant Contact Inc Nasdaq 38.67% 27.76M 29.05M Computer Services ADS Alliance Data Systems Corp NYSE 37.56% 50.22M 52.00M Computer Services PETS PetMed Express Inc Nasdaq 37.15% 19.77M 22.78M Retail (Drugs) BBBB Blackboard Inc. Nasdaq 37.00% 33.07M 34.40M Software & Programming CADX Cadence Pharmaceuticals Inc Nasdaq 36.40% 33.68M 62.06M Biotechnology & Drugs CONN Conn's Inc Nasdaq 36.32% 14.59M 31.76M Retail (Technology) MNI McClatchy Company, The NYSE 35.29% 50.63M 60.16M Printing & Publishing NTRI NutriSystem Inc Nasdaq 35.22% 24.02M 26.72M Personal Services HOV Hovnanian Enterprises Inc NYSE 35.16% 49.97M 63.11M Construction Services FSYS Fuel Systems Solutions, Inc. Nasdaq 34.87% 13.33M 17.62M Auto & Truck Parts CHBT China-Biotics Inc. Nasdaq 34.55% 10.89M 22.15M Biotechnology & Drugs AN AutoNation, Inc. NYSE 33.53% 41.70M 148.00M Retail (Specialty Non-Apparel) SHLD Sears Holdings Corporation Nasdaq 33.19% 39.43M 110.01M Retail (Department & Discount) COCO Corinthian Colleges, Inc. Nasdaq 33.16% 76.09M 84.38M Schools VECO Veeco Instruments Inc. Nasdaq 32.80% 39.40M 39.90M Semiconductors OREX Orexigen Therapeutics, Inc. Nasdaq 32.29% 27.57M 47.58M Biotechnology & Drugs TWI Titan International, Inc. NYSE 32.23% 33.45M 35.35M Tires SYNA Synaptics Inc Nasdaq 32.19% 33.04M 34.11M Software & Programming EBIX Ebix, Inc. Nasdaq 32.10% 27.14M 34.78M Computer NetworksLPHI Life Partners Holdings Inc Nasdaq 31.95% 7.32M 14.91M Insurance (Miscellaneous) BYD Boyd Gaming Corporation NYSE 31.94% 54.21M 86.23M Casinos & Gaming CCME China MediaExpress Holdings Nasdaq 31.33% 11.25M 34.29M Advertising OPEN OpenTable Inc Nasdaq 30.88% 16.22M 23.02M Software & Programming TZOO Travelzoo Inc Nasdaq 30.87% 5.53M 16.44M Computer Services TXI Texas Industries Inc NYSE 30.24% 17.42M 27.81M Construction - Raw Materials QSII Quality Systems Inc Nasdaq 29.92% 19.15M 28.96M Software & Programming LNET LodgeNet Interactive Corp. Nasdaq 29.89% 15.47M 25.09M Broadcasting & Cable TV ADY Feihe International, Inc. NYSE 29.70% 7.54M 22.30M Food Processing SOMX Somaxon Pharmaceuticals, Inc. Nasdaq 29.52% 31.41M 35.42M Biotechnology & Drugs DMND Diamond Foods, Inc. Nasdaq 29.44% 21.20M 21.98M Food Processing ALGT Allegiant Travel Co Nasdaq 29.21% 14.56M 19.00M Airline ARNA Arena Pharmaceuticals Inc Nasdaq 28.95% 119.99M 121.41M Biotechnology & Drugs FSLR First Solar Inc Nasdaq 28.79% 55.45M 85.72M Semiconductors CALM Cal-Maine Foods Inc Nasdaq 28.78% 12.89M 21.45M Fish/Livestock CIEN Ciena Corporation Nasdaq 28.59% 90.97M 93.57M Communications Equipment PFCB PF Chang's China Bistro Inc Nasdaq 28.15% 22.57M 22.96M Restaurants SNIC Sonic Solutions Nasdaq 27.99% 46.22M 48.81M Computer Networks SFI iStar Financial Inc NYSE 27.93% 83.00M 92.32M Real Estate Operations WRLD World Acceptance Corp Nasdaq 27.92% 14.74M 15.65M Consumer Financial Services WTI W&T Offshore, Inc. NYSE 27.88% 34.70M 74.63M Oil & Gas Operations RAX Rackspace Hosting, Inc. NYSE 27.87% 96.59M 126.12M Computer Services ESI ITT Educational Services, Inc. NYSE 27.75% 27.65M 31.92M Schools MELA Electro-Optical Sciences, Inc. Nasdaq 27.69% 24.09M 25.25M Medical Equipment & Supplies BIOD Biodel Inc Nasdaq 27.56% 21.24M 26.39M Biotechnology & Drugs
Presumably you read the post and saw the third chart?
Fight Fight Fight Fight!
Looks like we have one winner: RAX.
I think I'll check out some long dated way OOTM KRE calls.
I just wanna share with readers here HOW MUCH MONEY I have made from reading columns here.
WOW! You guys putting out these columns are AMAZING! I went short after reading all these fine coumns and my bank account says $0 now...........that's a good thing right?
WAKE UP AND SMELL THE COFFEE PEOPLE! David Rosenburg and the rest of you ass clowns that have been negative are all dead wrong, bitter, and incapable of changing. The only worthwhile advice here has come from two posters, robo and harrywanger. Maybe you jackasses should do a column about them? How the hell can everything be negative to you jokers? A volcano? Wow, let's all cheer because a Volcano erupted and might slow down europe preventing an economic recovery........wrong!
98% of the articles here are garbage, the only reason to even look is to see if there was something material that moved the market lower and all that takes is a headline scan. Junk, Junk, and Junk me some more BITCHEZ!
Positions for 2011: Long Cisco, Short ZeroHedge
Member for 13 days?
I read for more than a year before signing on to post. Time absorbing should outweigh time spewing. This poor kid's obviously got some built-up spew.
More like a dumbass for 13 days.
I guess I would be upset if my bank account said $0 too (??)
I've seen better trolls.
I won't junk you, since you've obviously have enough rattling around in your skull.
Wow, I read ZH daily and was NEVER tempted to short. In fact, I had a fantastic year in gold and silver, and a basket of rare earth, uranium, and gold mining stocks. Sorry 'bout your luck chump. Must be tough being such a clueless douche.
True dat re: shorting, and I'm probably too chicken to short anyways. But ZH did introduce me to alternative ideas plus the idea of buying silver, which I get a major kick out of each time I do.
Could it be Yu Arafuka?
Junk Junk Junk! I love a good junk war. If this is your first day in Junk Club then you are required to junk.
I keep hoping they'll add a "junk count" for the account names. I don't do it much, myself. If my mockery isn't sufficient, I don't see the value in ticking a little thing on a website.
Full disclosure: I junked you twice for being a pussy and whining about being junked.
Pussy.
I"ve never whined about being junked. I bitched about the type of people who junk once time. That was in relation to a all the junks that harry, robo, and sometimes smelly smailes gets. I enjoy a good junk war!
I proposed a fix. If you care, support it. Everyone's acct should show how many junks they've issued.
It would be nice to know who can't do anything but piss on everyone else, in my considered view.
Hey 99, Before you start dising ZH you better learn and listen for a while. You need to spend a few years comparing what your Government says with reality. Then try watching what the "Professional Big Bank Anal-ists" and comparing reality for a few years. THIS MARKET IS ABOUT AS DANGEROUS AS IT CAN GET. You are a flea riding on the rump of a mad rhinoceros. The sooner you realize it the more cautious you will get.
I just nibbled at the SSO today. Two analysts on my payroll say last week the market turned bullish. These are short term signals. One of the analysts says technically there is BIG TROUBLE ahead. OK so, big deal I'm a little long on the S&P. I don't expect it to last long. I sure wouldn't own too many individual stocks right now. A company's stock can be trashed in a nanosecond by the big boys.
Thank you for sharing.
<insert image of clue card>
(Geez.)
can we short zero hedge?
Go away you optimist.
"Confirmation Bias cat is biased."
PS: How anybody can be short the market right now after reading zerohedge regularly is beyond me. It ain't Durden's fault you took home the wrong message.
The smart money is preparing for the deluge.
I haven't had a chance to tell you yet.... "nice avatar tits"....so there it is and thanks (better late than never, eh?).
Cheers
Yeah, she is an Italian model, quite tall and thin, sporting a 'push-me-up bra' of special design. It works, obviously. Those are her real jugs, with no implants. She's a doll. I dream about her.
was short from Jan this year...squared up in early November...Ben Banker has beaten me into submission. Think the market powers up from here but I will not put any money in it. There will be a day when all profits are just wiped out in 10 minutes...I will NOT be playing in a sandpit with so many buried turds in it
I've been dollar cost averaging into this mutha fucka for my kids college plans. after 9 years I've finally pulled out a five percent return annualized over the last ten years. Went from negative to positive in about 18 months. the other 8 1/2 years. Not so good. Until now! YOu can polish a turd by the way, contrary to popular opinion.
I picked up a turd once in a sandbox. Thought it was a stick. Kinda embarrasing.
The Fed got this muthafucka...short at your own risk
you will take this statement back. watch and see S&P slide now that all Bears have been toasted.
I'm buying insurance tomorrow. " VXZ " Cheap'
jeez Spalding. I'm not this time unless a breakout to the upside is confirmed in tomorrow's action. I'm still puking from my VXX kickintheballs. Anyway, good luck and let me know how it plays for you.
Kre is kbw right? I'm almost tempted to buy it. Tell me why I shouldn't.
cmon someone tell me why not to buy it. Assuming it is kbw. All the bad news that is known appears to be priced into the market. the slightest good news and boom. Up it goes.
kre (kbw?) looks like the trade of the century. Large banks are showing some strength.
puhleaze! Anyone? My amateurish reading of the technical indicators on yahoo say it is neutral to over bought right now. How could that be if it has such a huge short position?
I was not following SPY action today...so I confess I have little to add to the subject of the SPY...other than to confirm that, indeed, the SPY is the biggest crap manipulation tool ever loosed on the markets.
However, I do see that volume was a touch above yesterday, which is to say that it was an inch or so taller than a pile of lark's vomit, as buyers continue to disappear into some sort of vacuum where only GS knows how or why the market keeps rising...and is, at least, in part because of the fact that the SPY creation units machine must have been working today. And that is probably a good thing for perma bulls, cause the VXX creations units machine failed today...or was unplugged...or something.
But I don't really know all that much about things such as this, and so all you guys from Hong Kong should probably just keep on bidding up burritos and Apple and the SPY...although in the case of the later, it looked very much like the lark was vomitting during those last 30 minutes, if you know what I mean ;)
Robot Trader...you kind of sold out, you once referenced the direction of the market as wildebeest changing direction across a river bed...and nowyouare a born again ex-bear....
Sold out? -- or bought in?
The extent to which SPY is manipulated and serves as a proxy to this entire sham of a market, is beyond words. I've seriously considered starting a blog in the last couple of months dedicated to nothing but the absurdity of this market and its linkage to SPY and ES. If someone de-listed those two securities overnight the stock market would circle around like a chicken with its head cut off and then take a vicious dive.
At least 75% of the upward movement of this market is attributable to the futures being jacked up overnight and opening the market higher... which triggers stops and forces buy orders in program, HFT, and trend-following systems. And if that isn't enough to get the market moving higher, then SPY is forced up through key levels in giant bursts of volume during normal market hours. If one wants to see what a shame this market is pull up intraday charts showing price and volume from the nineties... or any other REAL bull market, and compare the differences. More often than not, markets open LOWER in REAL bull markets and then climb higher throughout the day from real buying. Not so these days.
Mispost.
To find out more about the Imminent Collapse of the U.S. Economy, watch this video "PUMP AND DUMP HORROR SHOW, END OF U.S. EMPIRE PONZI SCHEME" at (http://www.youtube.com/watch?v=Pf7e7xAm77w).
by Anonymous
This feels like late summer 2008, when the Dow went like a rocket from 10000 to 14000 within a few months and we all know how that ended. I'm all cash now because I'm terrified by what is going on. I think we are headed for a huge CRASH sometime in 2011 or 2012. This time the Gov is so much in debt that it can do nothing and we will slide into the Greatest of Depressions.