NYSE Short Interest Jumps To Highest In 2011, Just In Time For The Squeeze

Tyler Durden's picture

And just like that, the short trap is set: following some sideways movement over the past several months, in which the market grotesquely, mockingly did not proceed in a straight line up, unlike the 8 month "Birinyi Ruler" period from August to March which extrapolated to about S&P 2,800 in 2 years, some (naive) investors speculated that the Fed may be losing control of the market and proceeded to short ridiculously overvalued stocks, that no longer reflect not only the economy on Earth but probably on any other life-supporting planet in the known and unknown universe, in dimensions from 3 through 10 or anything else reasonably allowed by Kaluza-Klein. As a result, just announced short interest on the NYSE for the period ending April 29 has hit a fresh 2011 high, climbing to 13.094 billion shares from 13.05 trbillion (what's a few zeroes between sociopaths). Alas, this comes just as the Treasury will do everything, and we mean everything, in its power to ram the market from the s to the p orbital, trap all the shorts, force the custodians to pull every share on borrow there is, and generally to make selling stocks illegal, probably coupled with a few thousand margin hikes in everything from precious metals to tetrahydrocannabinol over the next month just to keep traders' eyes focused on the ball, simply so it can divest some of its tens of billions in shares of AIG stock and claim victory over the tin foil clad skeptics. As usual, those hoping that the neo-feudal stock market is fair and/or efficient are about to be KYed.

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kengland's picture

Same goes for treasuries. Crowded

rocker's picture

I tried short treasuries and got stopped out on the second day.  I have always said, the crooks know where your money is.

Goldman Sach's software knows exactly how much is in the market and takes it.  That's why the market is rigged by

Goldman, JP Morgan, and Bank of America.  How else can they trade perfect for 90 days and only have one bad day.

The above are nothing less than thieves. Honest valuations mean nothing. Especially with no volume.

Robslob's picture

Your fault, my fault rocker....

Let's just take the fucking money "out of play" in cash or PM's...deliver the the gift of:

Fuck You Bernanke!

slewie the pi-rat's picture

yep.  i just play with myself, now.  cash, BiCHeZ.

even bill bonner has been paying attention:  The Case for Cash: Why a 0% Yield Is Sometimes Your Best Bet

DoChenRollingBearing's picture

Nooooooooooooo!  Not the THC too!

Oh wait, the Tinfoil Hat Brigade is THB.

Sorry, carry on.

RoRoTrader's picture

The cash thing I agree with especially for someone who knows how to be agile and use leverage when trading, which probably most don't.

MoneyWeek wrongfooted the Euro and the FTSE in a big way around the end of March (far enough back in time to be lost in the public memory) telling readers to get out of both 'right away' or words to that effect.......the FTSE and Euro went higher.

It was written like a trade call, maybe unintentional, and may turn out to be right in the longer run, but amateurs who took that line and the infered short paid.

What do you think slewie?.........looking at a daily chart of the FTSE (6045) puts it close to the top of a range back to January, but that is not to say it won't follow the Dow higher if the dOW breaks higher INTO ITS 2007 topS.......GETTING CLOSE.

i have not made a decision yet for what that is worth.......13,000 Dow is getting close



slewie the pi-rat's picture

i don't trade any more.  no accounts.  gold & silver US coins and cash.  no counterparty.  ever.  no leverage.  no debt.  no credit.  and, no losses.  i don't even like to write checks.  would rather use a money order. 

poor.  free.  happy. 

so, i follow the PMs, especially silver.  pretty hot stuff for the last decade, too. 

i even advise people to cash in their retirement accounts, pay the fees & taxes, and get into PMs.  why do they want the goobermint for a "partner"?  black markets are free markets.  maybe they can make this last another 35 years.  then, i'll be 100, and i'm really gonna be an asshole!!!  whoodathunkit?

augie's picture

I am happy to see the "pirate" reference isn't just a moniker for you. Wish we had more people who lived the life style instead of corrupting its purpose as a novelty.

RoRoTrader's picture

i definitely like your philosophy, slewie.

Lets_Eat_Ben's picture

yeah. The system is geared to take your money from you => Take your money from the system!


Sam Clemons's picture

Speaking of valuations.  Have you seen the latest Shiller data?


The market is mainly a function of liquidity, not fundamentals.  I agree completey that the big guys can see all open positions and fully take advantage of them.

Howdan's picture


Likewise Rocker....I also tried shorting Treasuries (10yr) after 32, yes, 32 consecutive up trading sessions when they looked so overbought. But guess what - they just kept on a'risin'! This whole thing stinks to high heaven of market manipulation - I mean who in G-d's name is buying all these flippin' T-Bonds at sub 3.30% yields???


I too got stopped out on the second day but i've now been burned so badly that I'm not going anywhere near Treasuries anymore....can't take it being constantly squeezed.

zman78's picture

I think you're reaching a bit here with this one Tyler.  These levels can hardly be construed as being 'high'.  Relative to 2010 they are at the lower end of the mid range at best.  I've been snipping away at some cheap vix calls for Oct and farther out and will continue to do so as volty compresses.  My feeling is that we will see at least one real pullback between now and October, not this 7% garbage we seen in March.  The elastic band is streching even further...

bigelkhorn's picture

I reckon NYSE up and bonds to crack here.


That guy from FFT is oz is good, I been following him for a while and he called the market crash in 2008. 


I belong to his membership site, its awesome and has live videos and everything to follow along. 

Makes it easy to take money from the market even if you are a newbie!. 


His new monthly trading club is opening tomorrow, and over at :-


Calvin Jones and the 13th Apostle's picture

It's just a matter of when, not if.

Mr Lennon Hendrix's picture

Time to "bailout" the "sinking" but nationalized European banks...step right up America!  Your tax dollars are needed once again!  Yes you funded the Central Bank of Lybia, which you are now at war with.  Yes you bailed out all the corporate banks, corporations, and wives of bankers.  Yes you funded the fiat ponzi, but it is time to bow down to the IMF once again.

Ham Wallet's picture

Haha.  I read an article this past week (forget where, maybe marketwatch) that said it should be PIG not PIGS, because Spain was in good shape.  D'oh!

el Gallinazo's picture

It should be PIIGS for Ireland and Italy

Re-Discovery's picture

Just a few days after poster put something on here about spreads showing no cause for worry.

Spain's problems will be fun, and will begin the Euro endgame.

wirtschaftswunder's picture

and will begin the Euro endgame.


It hasn't started yet?

Re-Discovery's picture

I guess every endgame can be said to have started.

I was think more in terms of Churchill-type statement

"Greece, Ireland and Portugal are the end of the beginning"

"Spain is the beginning of the end."

Funny how the whole post-WWII era is coming full circle with the Euro collapse.  Germany is gradually going to be defeated from the periphery on in just like it was back then. 

The new Marshall Plan will have to come from somewhere else this time.

eureka's picture

How about USD endgame?

Gentleman's Bet: USD = Zero before EUR !

j.darkness's picture

i'll take that bet though if you are right then we wont be able to have such free discussion over fiber optics.  meet me in the mountains of vermont and i'll give you a glenlivet!

Boston's picture

Ambrose, only a couple of months ago, argued that Spain should not be lumped in with the rest of the "PIIG".


Looks like he might want to reconsider.

Dr. Engali's picture

They must be fucking stupid.

Long-John-Silver's picture

or brilliant simply because they have government backing with unlimited money.

wirtschaftswunder's picture

Or simply fucking John Mack's wife.

espirit's picture

If Tyler's right, at least they're using KY.

Mr Lennon Hendrix's picture

NYSE, time for your DOT exam!

buzzsaw99's picture

Never short a dull (or rigged) market.

Rainman's picture

Vaporize shorts on the way to Dow 36k. That's called wealth redistribution.

lizzy36's picture

It is not Dow 36k anymore. That was last decade. Now we are looking forward to Dow 38,820:

Super Boom: Why the Dow Jones Will Hit 38,820 and How You Can Profit From It


Bonus is there is a foreward in that book from "i have doubled down on peking duck for the last 10 years (everyday)" Ritholtz.

Fish Gone Bad's picture

The DOW may go to 38,820 but my guess is 14,000 is high enough.  A few people on ZH gave me shit about the 14,000 prediction a few years ago.  So why 14,000?  That is where the Oracle of Omaha gets paid off for his bet.  This is the same man who bailed out the railroads, GE, Goldman, Wells Fargo, and probably a mess of other companies as well.  For payback, he gets to win his 14,000 points on the Dow bet.  After that, all bets are off.

LRC Fan's picture

Lol...Dow 38k+ by 2025, 1 gallon of unleaded $500k, Gold to infinity. 


francis_sawyer's picture

I just figured it out...

Robo = Laszlo Birinyi

kengland's picture

To add insult to injury, these are "professional money managers" that do this sheet. And the sheep line up in droves, crowding over each other, begging to have these arse wipes "manage" there fortunes.

wirtschaftswunder's picture

Yeah, they cut their teeth being long Lucent on deep margin in March 2000.

duncecap rack's picture

Who are the market makers who sell the shorts?

Mr Lennon Hendrix's picture

+1, well put....

The taxpayers are buying the shorts after the Federal Reserve and other Majors are selling them.  I wish Bernanke would begin reffering to economics as ponzinomics.  I doubt many people would notice, let alone care.

buzzsaw99's picture

brokerage houses, banks (the masters of the universe to whom you allude), sometimes even pension funds lend out shares. Aside from all the obvious pitfalls you can also have your shares called at inopportune times, such as when you are down, or about to cash in big time, for no reason, or else because the ptb need a market boost. easy money. lulz

The Swedish Chef's picture

Oh, how they wish they had a tetrahydocannbinol market to tax beyond ridiculous. There would be no deficit then... Long bongs, short urine tests. Or long both.

Trimmed Hedge's picture

"...climbing to 13.094 billion shares from 13.05 trillion."

Wouldn't that be a decrease?


The Swedish Chef's picture

Climb TO 13.094 FROM 13.05. No, that´s an increase with 0.044 billion shares.

Dr. Engali's picture

What's a few trillion amongst friends?