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NYSE Short Interest Lowest Since January As Selloff Buffer Disappears

Tyler Durden's picture




 

Here is another reason why the market may soon undergo Flash Crash 2.0 on purely structural reasons that have nothing to do with the deranged computerization of capital markets - the one natural decelerator to any market collapse, short interest, was just reported by the NYSE to have hit a 7 month low, at 13.7 billion shares. This metric hit a 2010 high of 14.5 billion in the days following the flash crash, when the natural response by investors was to follow through on waht was expected to be a major market swoon. Yet the odd July move higher on no volume which was a direct replica of last year's action cut off this move into shorts early on, and the result now is that the short interest buffer is now gone. Absent the mystery bidder appearing, there will be few "profitable" buyers remaining to prop the imminent market crash. 

 

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Wed, 08/11/2010 - 11:31 | 515258 Mactheknife
Mactheknife's picture

SDS Bitchez !!!

Wed, 08/11/2010 - 11:33 | 515264 jbc77
jbc77's picture

Could this really be it? Could reality finally be upon us?

Wed, 08/11/2010 - 11:38 | 515284 Ragnarok
Ragnarok's picture

No.  Investment houses are just out making money to the short side today.  It will finally be upon us when USD start becoming repatriated en mass.

Wed, 08/11/2010 - 11:54 | 515371 Tense INDIAN
Tense INDIAN's picture

dont tell me there will be another RAMP UP of stocks ...this is the starting of the crash isnt it???

Wed, 08/11/2010 - 11:38 | 515289 mikla
mikla's picture

No, but we *are* walking closer to the light...

Wed, 08/11/2010 - 11:59 | 515347 Paper CRUSHer
Paper CRUSHer's picture

mikla

Is that a light i see at the end of the tunnel?LOL

Wed, 08/11/2010 - 12:53 | 515621 Turf
Turf's picture

loool

 

Wed, 08/11/2010 - 11:33 | 515267 Zina
Zina's picture

Market will close on green today.

It is the logic, no?

Wed, 08/11/2010 - 11:34 | 515268 Racer
Racer's picture

Ah but shorts were deemed to be evil and the reason for market falls so they had to be eliminated.

Well now you idiots that think you are in control see what happens when you kill off the few that try to find true fundamental values

Wed, 08/11/2010 - 11:33 | 515270 Dr. Copper
Dr. Copper's picture

Who cares about short interest, since there are no participants in the market?  You pay attention to indicators that would only matter if, contrary to your beliefs, people still traded in this market.

Wed, 08/11/2010 - 11:40 | 515298 EscapeKey
EscapeKey's picture

What the BEEP just happened to gold?

Wed, 08/11/2010 - 11:41 | 515307 firstdivision
firstdivision's picture

Too many weak souls in the market today.

Wed, 08/11/2010 - 12:00 | 515315 Paper CRUSHer
Paper CRUSHer's picture

Tyler, i think you meant 14.5 BILLION shares and not 14.5 Million(million shares).Don't tell me you've already removed the letter B(billion shares) from your keyboard to stop another potential 'Phat Phinger Phenomena' from occuring.

Wed, 08/11/2010 - 11:46 | 515330 johngaltfla
johngaltfla's picture

Today is a good day to test sell programs.

So they can be used without mercy in September and October.

Wed, 08/11/2010 - 11:55 | 515375 Eric Cartman
Eric Cartman's picture

Where did all the HFT's go? 

Wed, 08/11/2010 - 12:09 | 515437 old_turk
old_turk's picture

Hiding under heat sinks and little bitty bits of silicon.  They are not allowed out in a ramp job adverse environment.

Wed, 08/11/2010 - 11:58 | 515394 william the bastard
william the bastard's picture

Why the market would rally 4,000 plus points as our worst initial fears of Obamanomics are daily exceeded is beyond the capability of any orthodox analysis.

Wed, 08/11/2010 - 12:43 | 515578 RobotTrader
RobotTrader's picture

FAIL!!!

 

Wed, 08/11/2010 - 13:12 | 515694 johngaltfla
johngaltfla's picture

That chart sure is one ugly bitch. Of course, the Regional banks are worse now...

Wed, 08/11/2010 - 13:17 | 515711 Thomas
Thomas's picture

Your hyperbole on that chart looks warranted (to a non-TA guy I should add.)

Wed, 08/11/2010 - 12:58 | 515641 TraderTimm
TraderTimm's picture

Nothing you post RobotTrader is fail :)

But the market however... look out below!

Wed, 08/11/2010 - 13:04 | 515662 Species8472
Species8472's picture

Is a change of less then 10% significant?

 

Wed, 08/11/2010 - 13:20 | 515728 crzyhun
crzyhun's picture

Watch for the coming ramp....about 1PM...how high will it go??

Wed, 08/11/2010 - 15:27 | 516126 Grand Supercycle
Grand Supercycle's picture

DOW/SP500 daily charts are now bearish.

So the downtrend I first mentioned in early May this year, can now resume.

http://stockmarket618.wordpress.com

Wed, 08/11/2010 - 20:43 | 516911 StychoKiller
StychoKiller's picture

I gather this means that undertakers/funeral directors serve a necessary function in the world after all!

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guccichanel's picture

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