Most Shorted NYSE Stocks Update
The following list represents the most shorted stocks on the NYSE as of mid November. The most shorted name continues to be Citigroup, by dint of the fact that it is one of the must churned companies in the HFT repertoire. As such the massive short position is not so much a negative bet on the name as much as a net offset to existing HFT longs, allowing the GETCOs of the world to churn their way into a DMM liquidity rebate nirvana.
The chart below shows the progression of shorting and covering over the past 2 months. The week ended November 15 saw a massive surge in F shorts, just in time for the GM IPO to cause a forced covering rally in the car maker, allowing GM to continue trading about 50% higher than fair value due to the paired presence of both names in most stat arbs baskets.
Lastly, the companies that are turly loathed are presented below: these are the top 25 stocks with the highest ratio of Short Interest to Average Daily Volume. While it is not surprising that some of these are ETFs (such as KRE, XRT and XOP, in some cases the ADV being even higher than the total float), the most ominous single names were FBP, MCO, WM, CTL, CPN, NYB and SFI, all of which had a SI/ADV ratio of >10.0x. If the State Streets of the world wanted to force the mother of all short squeezes all they would need to do is force some buy-ins in these 6 names, and the resultant price explosion would make the momentum chasing in NFLX and AMZN seem like amateur market manipulation hour in comparison.