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NYSE Short Interest Declines Again, Just In Time For Market Drop

Tyler Durden's picture


While not at the lows from January, when NYSE short interest hit a multi year low of 12.4 billion shares, the just released update shows that into the end of February, total short interest once again declined from the Mid-February dead cat bounce which saw it at 12.8 billion, with the latest print at 12.6 billion shares. And now that the market is finally realizing that there is a several hundred point vacuum underneath if indeed there is even a brief break in Fed monetization, the number of shorts that may opt to cover on the market's way down is far lower than in recent history. Of course, this is what happens when everyone bets on the Bernanke Put and said Put starts to sputter, which simply means that the Fed chairman, who traditionally equates economic growth with the Russell 2000 is more boxed into a corner, than ever: QE3 will second gold to 2,000 and oil to 1,50. No QE3 will send the S&P to sub 1,000. Place your bets.


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Thu, 03/10/2011 - 12:00 | Link to Comment LawsofPhysics
LawsofPhysics's picture

ha-ha, my shorts paid big this morning.

Thu, 03/10/2011 - 12:36 | Link to Comment Bleeping Fed
Bleeping Fed's picture

Since I'm constantly inclined to trade against Cramer's recommendations, here's a big HAYOOB!

Thu, 03/10/2011 - 12:03 | Link to Comment gordengeko
gordengeko's picture

70-30 says QEIII.  If they don't... bring in the new one world currency!

Thu, 03/10/2011 - 12:29 | Link to Comment Bleeping Fed
Bleeping Fed's picture

Yes, and we all know how well one currency is working for Europe...

Thu, 03/10/2011 - 12:05 | Link to Comment Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Bye bye cheap food, hello turmoil...

Why Canada's four western Provinces led by gateway city Vancouver BC is the World's safest haven location...

Thu, 03/10/2011 - 12:06 | Link to Comment buzzsaw99
buzzsaw99's picture

QE with a sideways 8

Thu, 03/10/2011 - 12:14 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Winner, winner chicken dinner!

Thu, 03/10/2011 - 12:07 | Link to Comment Jason T
Jason T's picture

bought some UUP and SH today.. and a little AOB, a value stock I like.

Thu, 03/10/2011 - 12:07 | Link to Comment the phantom
the phantom's picture

Prediction: Stick save, and a beauty, by the PPT moops at the close to keep the SPY's at 1300. Must...defend...charade.

Thu, 03/10/2011 - 12:10 | Link to Comment Overflow-admin
Overflow-admin's picture

Yeepee it's great time to buy bonds! </Weimar Ben advice>

Thu, 03/10/2011 - 12:10 | Link to Comment dark pools of soros
dark pools of soros's picture

thank god it's BTFD day

Thu, 03/10/2011 - 12:09 | Link to Comment Sudden Debt
Sudden Debt's picture

QEIII² will come 2 weeks after the end of QEII

Thu, 03/10/2011 - 12:11 | Link to Comment uhb
uhb's picture

QE will go on forever, because noone (beside the fed) will buy t-bills. And hey , they even pay interest... to themselves!

Thu, 03/10/2011 - 12:18 | Link to Comment plocequ1
plocequ1's picture

Exactly. Its all a show for us sheeple to behold. Phony opposition against QE and other issues are becoming obvious. What little intelligence i have is being insulted everyday. There will be QE3, 4,5,and 6 so sayeth our owners.

Thu, 03/10/2011 - 12:11 | Link to Comment Village Smithy
Village Smithy's picture

He will QE until the bond markets make him stop. Until then BTFD.

Thu, 03/10/2011 - 13:51 | Link to Comment John Wilmot
John Wilmot's picture

Correction: He will QE until he is the bond market.

Thu, 03/10/2011 - 12:14 | Link to Comment TradingJoe
TradingJoe's picture


Thu, 03/10/2011 - 12:19 | Link to Comment LOWNskater52
LOWNskater52's picture

" QE3 will send gold to 2,000 and oil to 1,50. No QE3 will send the S&P to sub 1,000. Place your bets."

What do you pay if both happen?   I'll take that bet

Thu, 03/10/2011 - 13:07 | Link to Comment bunkermeatheadp...
bunkermeatheadprogeny's picture

Then go buy FAZ and NUGT, or be the contrarian with FAS and DUST.

Thu, 03/10/2011 - 14:11 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Stock markets do not like inflation causing margin collapse. Look at the '70s.

Thu, 03/10/2011 - 12:23 | Link to Comment Racer
Racer's picture

The evil shorters are not so evil after all... they were just used to push the market up but they forgot that the shorters are very useful on the way down and will slow any fast drop.

If they can't keep the wheel from spinning fast it will get very fast indeed.. I see it is smoking right now and they are tryng to jam the cogs to hold it

Thu, 03/10/2011 - 12:23 | Link to Comment rosiescenario
rosiescenario's picture

...a few more days of this market action should provide sufficient conditioning enough that all will welcome more QE...all will come to realize that our new economic order depends on QE forever....buying PM's today.

Thu, 03/10/2011 - 12:44 | Link to Comment UnRealized Reality
UnRealized Reality's picture

That's what happened in the 30's shorts were banned and the market decline even further. You need shorts cause they are the only ones that buy in a declining market. And BB claims to be a student of the Depression. LMFAO

Thu, 03/10/2011 - 13:26 | Link to Comment Saxxon
Saxxon's picture

Are you sure about that?  Roosevelt and the new SEC changed a lot of things but I was unaware that an outright ban on short-selling was one of them.  I thought it was just an uptick rule.

Thu, 03/10/2011 - 13:53 | Link to Comment UnRealized Reality
UnRealized Reality's picture

Back then the Gov't put so much pressure on shorts and want after the evil spec. shorts, every body and there mother was terrify to short. It wasn't an out right ban but it mine as well of been cause every body was in fear for their life to short anything. I'm not sure about the up-tick rule but they put the fear of God in all Shorts, so nobody shorted anything. There were large scale investigation on shorting back then. So without Short, nobody bought and the market tank further.

Thu, 03/10/2011 - 13:01 | Link to Comment HedgeFundLIVE
HedgeFundLIVE's picture

i'll say it again, as hopefully this time i'll get a better response- short this market! names i'm looking to short:

Thu, 03/10/2011 - 13:39 | Link to Comment cramers_tears
cramers_tears's picture

QE-"To The Moon - Alice"!!!!!

Thu, 03/10/2011 - 13:48 | Link to Comment BORT
BORT's picture

Have you ever seen so much Angst over a four percent drop in the R2000??

That must have some meaning

Thu, 03/10/2011 - 13:54 | Link to Comment Saxxon
Saxxon's picture

That's not the source of the angst.  >$90 crude and a looming double-dip is the source.

Thu, 03/10/2011 - 13:55 | Link to Comment Grand Supercycle
Grand Supercycle's picture

I'm sticking with my Feb 22 call that the DOW top on Feb 18, 2011 signals the end of the rally.

Longs please be careful.

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