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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jbc77's picture

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

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.

Tense INDIAN's picture

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

mikla's picture

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

Paper CRUSHer's picture


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

Zina's picture

Market will close on green today.

It is the logic, no?

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

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.

EscapeKey's picture

What the BEEP just happened to gold?

firstdivision's picture

Too many weak souls in the market today.

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.

johngaltfla's picture

Today is a good day to test sell programs.

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

Eric Cartman's picture

Where did all the HFT's go? 

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.

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.

johngaltfla's picture

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

Thomas's picture

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

TraderTimm's picture

Nothing you post RobotTrader is fail :)

But the market however... look out below!

Species8472's picture

Is a change of less then 10% significant?


crzyhun's picture

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

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.


StychoKiller's picture

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

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