NYSE Short Interest Drops To Lowest In 2010

Tyler Durden's picture

According to the just released NYSE short interest update, the number of shares short on the NYSE group has just dropped to 2010 lows, after dropping by over 1 billion since the August highs. This has occurred pretty much in linear fashion: in the last 4 months, there has been just one two week period in which the shorts have increased. What is just delightfully ironic, is that even as broad market volume has collapsed, biweekly short covering has surged on a relative basis. In essence, the bulk of the market buying has been short covering, which traditionally is always 'offer-lifting' heavy, as shorts are willing to pay any price to cover underwater positions, especially if there is an accelerant involved, such as when a repo desk advises its "client" that State Street has decided to force squeeze financial stocks for the nth time since March 2009.

The chart below shows that after standing firm through the end of September, shorts have capitulated and the bulk of the weak hands has by now been washed out.

The second chart shows the near relentless covering in biweekly short positions:

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goldmiddelfinger's picture

Record high margin balances, record low CBOE put/call ratios, AAII at 60% bulls: Buy em up!

ZeroPower's picture


Low short interest, numerous recommendations of SPX double digit growth in 2011, low VIX. All signs of complacency.

I normally disagree with people who call anything (i.e. tops) but i wouldnt be surprised for January to start off with a bang indeed...

thepigman's picture

Complacency doesn't count anymore

as there no market except that

for kiting equities between the Fed and primary dealers.

We know from the court documents anything

can be repoed, so you can bet anything

IS repoed on a nightly basis. What

a fraud.

thepigman's picture

The insolvent TBTF banks have no source of income

except for trading with the Fed

Fish Gone Bad's picture

TBTF has pretty much an unlimited source of income from the Fed.  Eventually something bad will happen that will pull the rug out from pretty much everyone.  Until a comet hits the earth, I would expect this game of extend and pretend to continue for the foreseeable future, as this is the only game in town.

thepigman's picture

Good.... as crackpot Ben sends rates

soaring, there's no one left to buy.

Freefall, baby.

Boilermaker's picture

Wrong, he'll just quote stuff the shit out of it higher.  Bigger hammers are readily available.

Golden monkey's picture

Fucken right. Sheeple needs to boil, in Benny's kitchen.

DavidC's picture

The move today, after London's close at 4:30 p.m. has been classic HFT stuff, 3, 4, 5 pips up, then 1, 2 down and then up again.I was seeing this on a regular basis through the Summer, always occurring after the London close.


Racer's picture

Bank holiday in UK today and yesterday, so only futures HFT in the game for FTSE

BeeTee's picture

London wasn't open today. Bank holiday.

DavidC's picture

I'm aware of that.

All spreadbet companies have been open and trading.


Chappaquiddick's picture

Look at he NASDAQ100 - that grand daddy IHS indicates at target price of 3000 - wtf???


Oh yeah - hyperinflation.

Racer's picture

Zimbabwe Ben will make sure of it

JohnG's picture

Inverse Head & Shoulder formation.

goldmiddelfinger's picture

Ahh. Thanks. Was thinking IHS Corp (IHS) had done a big-O government study!

gigeze787's picture

Fed's WSJ lapdog 'reporter', Jon H, reporting that Comrade Chairman Ben has a call in to Fox News' 'free market' expert, Karl Rove, to ask him where the "MISSION ACCOMPLISHED" banner -- last seen in May 2003 -- was stored when 43 left office. Rove would neither confirm nor deny that the banner will hang above the entrance of the GWB43 Presidential Lah-berry. 

Calls to Rove's former boss were answered with, "Ben who?....Global Financial Crisis?...which globe would that be? Housing bubble implosion...not on my watch...we had the "Ownership Society" to make sure ALL of the serfs were owned by the TBTF aristocracy...and we accomplished our mission!"


Sudden Debt's picture

Can't complain :)

My BAC warrants first got hammerd, recovered, hammerd again and have now exploded to the upside :)


hugovanderbubble's picture



u always make me smile and laugh¡

HarryWanger's picture

Why would anyone be short a market that will continue to get Fed money pumped into it? Common sense, not a contrarian indicator. 

Boilermaker's picture

Has anyone told you to go fuck yourself today?  No?  Ok, go fuck yourself then.

Robot Traders Mom's picture

Well played Boilermaker. Although Harry is my nephew, his IQ is only about 40. That is 5 points higher than my son.

cosmictrainwreck's picture

besides, Wanker, your buddies didn't even have enough muscle to juice that fuckin' Dow to a full +30..... love that limp dick chart. see that duoble-top from 3:00 to 3:45? talk to me tomorrow

goldmiddelfinger's picture

Today is the last day to settle equities regular way into 2010

Sophist Economicus's picture

Best not to short when it seems obvious.   Best to short when everybody thinks this is the worst time to short.   WHEN the market tanks, and it will, the ride down is always faster than the long, long, long road up.   SHorting need not be done in one big plop ya know.   One could feather in a position, ya know.   Wonder what the euphoria felt like in the many 50% up moves in the Nikkei or the DOW in the 1930s.   


COMMON SENSE says underwater consumers, declining real estate values, low interest rates that hurt savers and seniors, 20+% unemployment, speculative bubbles in commodities, etc do not a BULL MARKET engender.    Might be wrong though, but it's my money, I think I'll keep playing it this way....

SheepDog-One's picture

No one in the equity market, who cares what it does?

rosiescenario's picture

Who can fight the Fed POMO? I got out of all my shorts (except one) 3 months ago. If fundamental analysis no longer works (between the Fed and the algo's), how can one short stocks (unless armed with some very good inside information)?

Boilermaker's picture

Can I interest you in an IYR short position and some put options?  The REITs are only pushing triple digit valuations.  You're sure to cash in big.  I'll even sell at a discount.  Let me know! XOXO

thepigman's picture

POMO is transfering the fed's dollars

to the banksters and the

fed is running up big losses doing it. Which means the

bankster are still in fucking trouble

with no loan growth.

Waterfallsparkles's picture

The FED is transfeering all the BAD DEBT on to its Balance sheet.

What happens when we have to bail out the FED?

thepigman's picture

Oh, Wanker....did you know the Fed's

only 50 basis points away from insolvency?

How do you think that'll go over with

all their little friends, hmmmmmm?

thepigman's picture

Picture Ben wearing a top hat and a

barrel....you like?

thepigman's picture

His Caribbean off balance sheet

subsidiary will have to sell their junker


SheepDog-One's picture

Americans are such complacent ignorant sheeple that even if theyre in leg irons at a forced labor camp, they'd believe 'all is well' as long as they were marched past a TV screen showing the DOW was up +20 today!

StychoKiller's picture

Oceania has once again exceeded its quota for Victory gin!  All hail, Big Brother!!

Id fight Gandhi's picture

Everything is just fine.

Market ignores a weak confidence number today. Doesn't consumer confidence correlate with consumer spending, aka bad retail? Never mind. Just buy.
housing double dipping. Never mind, just buy the fucking thing.

goldmiddelfinger's picture

Today is the last day to settle equties regular way into 2010-

just sayin

cosmictrainwreck's picture

interesting..... I guess "we'll see" (as always)

thepigman's picture

Dontcha just love the idea of the

TBTF banksters making the fed itself insolvent?

50 basis points away, folks.


goldmiddelfinger's picture

Peeps n Media too bullish on Gold! Gimme a break. TCK was $4 a year ago now it's $60 fer cryin out loud

Golden monkey's picture

Monkeys got TCK for 3.65$. Once uppon a time, markets

were not rigged.

LudwigVon's picture

Time to sell TCK.

Bank that $56/share paper profit -->2oz Ag/share

lunaticfringe's picture

Ooooh La La. The big rally is ON!

After washing all the shorts out, I am sittin' chilly just waiting for POMO to end at about the whole time the house of cards collapses.

So get on in there Harry Wanger, get ur last 15 mins worth of POMO induced buying in. In about 6 months, I'll have a boot on your throat. Figuratively speaking, of course.

walküre's picture

maybe if we had an alternative currency.

after a jubilee, a currency reform and a fresh start ... maybe you'll see stock valuations drop to reality


walküre's picture

just one simple question:

where would the liquidity go if stocks got sold off?

cash is worthless

stocks will not get sold on a broad scale just as metals will continue to climb higher.

the story of 2011 is the currency fiatsko

Greece's default is already accepted fact and probably priced in somewhere, somehow.

a billion USD today is not worth the same as it was 2009, let alone 2008.

End Game's picture

Do you consider gold an alternative currency?  CNBC's Joe says it's an old relic.  Curious that central banks still hold it as a reserve asset then.  Perhaps CNBC knows more than multiple central bankers world wide.  Don't fight the Fed.  Own gold!

Chappaquiddick's picture

Gold is the get out of jail free card.  All those tossers have to do is re-establish the gold standard and revalue gold to circa $500,000/oz and the US is solvent again (that includes the off balance sheet shit as well -> $110Tr), unfortunately, being the insane and crooked fucks that they are, they've stolen all the gold and therefore they've consigned everyone to the apocalypse.

cHappy New Year