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NYSE Short Interest Surges To Second Highest In A Year In Advance Of September Short-Covering Rally
Still wondering what caused the nearly 10% spike in the market? It sure as hell wasn't flows into funds and/or ETFs: both were negative for August, and we know that at least mutual funds have seen outflows for all of September. The reason is far simpler and it is no different from what caused the blind rally back in March 2009 when State Street commenced forced stock buy-ins after it gave an order to repo desks to recall all financial shorts: the NYSE short interest as of August 31 was 14.4 billion shares. This was the second highest gross short interest on the NYSE in over a year, and the highest since mid-June, when the market dropped from over 1,100 to the year lows just over 1,000. This time however, shorts were caught flat footed, as the spike in shorts by over 600 million NYSE shares, has seen a straight line market ramp beginning on August 31, and forcing blind covering without regard for what offers are lifted: a perfect environment for those who wish to set price on the offer side to execute their plan. At this point the short covering rally appears to have fizzled - we will update you on the mid-September SI data when it is released in a few days time.
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Why on earth would you short this market, given what TPTB have and will continue to throw into it? If you are shorting it, you deserve to be burned.
Right on, Ned.....the sad reality is that without the short sellers, Ben "corrupt" Bernanke's central planning would completely fall apart. At present, the corrupt Federal Reserve is relying on capital from the short sellers to keep the ponzi market up....if the short sellers go home, the market collapses, period!
Dear Tea Partier,
Thanks for all the free political help.
Love,
The Banks
Nothing wrong with being a Tea Partier. It's better than what the GOP and the 'Crats have established. More importantly, if having someone from the Tea Party, Block Party, Party Poker, or whatever party is willing to pull the plug on this legalized thievery by TimmyG/HelicopterBen/Barack, I'm all for it.
One day (I figure quite soon) theyll see the ramping and all is well headline lying is impressing no one and in fact is making people angrier as their poll numbers continue to drop and decide it is time to reverse direction and shear the bulls horns. The pump is always followed by the dump, this extreme case is no exception certainly. Law of diminishing returns is a bitch.
Dear Shorts,
We own you.
Love,
Your Friendly, Neighborhood, Colocated Server
I wonder what happens to every dollar that is exchanged for a short position.
Are they leveraged 20-40 times on the long side?
A REAL dollar in the markets?? Surely such an event as an actual dollar showing up in the markets would send all algorithms into a melt down.
Mission Accomplished!
I didn't know Barack was a white guy..
Doesn't matter who the figure head is.
Good lord. Five junks for posting a picture of GW Bush and the Mission Accomplished banner. Zero Hedge has become so politically correct. Such a shame. I've been saying for over a year that there is only one political party with two different factions. And yet people are so programmed that one picture can act as a wonderful cognitive trigger.
Fire away folks. My comment has nothing to do with politics and everything to do with manipulation.
Please excuse them, it's just a knee-jerk reaction -- sort of like crossing oneself whenever the Devil gets mentioned.
You mean instead of it being a gov't plot to drive up the market, it's actually Zero Hedge members driving it higher?!
Stocks are so 20th century...
Everything about this current market ramp screams short! I just have been burnt too many times with this trap.
If you want some stats on certain stocks go to short squeeze.com
Investors have lost billions of dollars taking short positions on financials while you allowed the private central banks to manipulate the banks financial positions without disclosing to investors. Only the bank insiders knew. They made a killing. This is fraud. What are you going to do about it? My complaint that I filed is below.
So how can the central banks secretly loaning banks hundreds of billions of dollars and not tell the public? How can one make market investment decisions when this info is not disclosed?
How can the central banks secretly provide hundreds of billions of dollars to banks and not disclose this information to investors? Isn’t this market manipulation? Where is the SEC? All those with put options or short sales were defrauded. I am one of those persons!
I am beginning to believe that the SEC is part of this fraud on the American people. I have not heard back on this complaint in over 2 months.
Bank of England tells of secret £62bn loan to save RBS and HBOS
http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/6646923/Bank-of-England-tells-of-secret-62bn-loan-to-save-RBS-and-HBOS.html
Bank of England advisers not told about secret £62bn loan to HBOS
http://www.guardian.co.uk/business/2009/dec/03/bank-england-secret-loan-hbos
Bank gave RBS and HBOS 'secret' £62bn loan
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article6929451.ece
Fed Refuses to Disclose Recipients of $2 Trillion
http://www.bloomberg.com/apps/news?pid=20601109&sid=apx7XNLnZZlc
Fed Fights Request To Disclose Who Got $2 Trillion In Bailouts
http://www.istockanalyst.com/article/viewarticle/articleid/3775032
Is Obama manipulating the stock market?
Economist claims president 'jawboning' economy to boost Dow
http://www.wnd.com/index.php?fa=PAGE.view&pageId=92100
VIDEO: Federal Reserve Manipulating Stock Prices?
http://www.chartingstocks.net/2009/09/video-federal-reserve-manipulating-stock-prices/
Does The Government Actually Manipulate The Stock Market?
http://www.businessinsider.com/does-the-government-actually-manipulate-the-stock-market-2010-2
Of course they are. See below for all you need to know about what's going on. If this little snippet of information was published, imagine what's going on behind closed doors that's never been disclosed. And it's all "legal", of this I have no doubt.
National Security is the great sink hole for corruption and malfeasance.
http://www.businessweek.com/bwdaily/dnflash/may2006/nf20060523_2210.htm?campaign_id=rss_daily
Intelligence Czar Can Waive SEC Rules Now, the White House's top spymaster can cite national security to exempt businesses from reporting requirements
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.
We need a class action lawsuit against the fed representing defrauded short sellers - Maybe we could get to discovery....
LOL, right, they'll just change the laws to make it legal-ish and / or declare it a matter of 'national security'.
Please...you're just a liquidity cow just the same as a long 401k bag holder.
Just remember to exercise your rights under the 2nd Amendment.
Simple, just 'regulate' or outlaw ammunition. Me, I'm a crossbow and bowie knife guy, I go pure Rambo style vigilante against M16s, tanks, and javelin missles. But, that's just me.
You'll need to throw a test case in a jurisdiction where they would not likely dismiss the suit based upon mere allegations of conspiracy (probably hard to find with the precedents out there, e.g. Ashcroft).
The better issue would be find a diligent lawyer and a test case and go to qui tam city. If you can find a federal prosecutor that's willing to play ball and can keep up with the financial details of the case, then you might have a winner... I can't see a judge willing to tell a federal prosecutor to eat shit and let the fed do whatever the hell it wants... we just need a federal prosecutor that's looking to make a name for him/herself and doesn't have any immediate family nor reason to live other than win the case.
But, again, you'll likely need specific, non public, information in order to move forward... this is the mother of all possible qui tam actions... hell, you could probably buy a state or two with that check (i'm being serious).
It has already been declared a matter of national security.
http://www.businessweek.com/bwdaily/dnflash/may2006/nf20060523_2210.htm?campaign_id=rss_daily
Intelligence Czar Can Waive SEC Rules
Now, the White House's top spymaster can cite national security to exempt businesses from reporting requirements
President George W. Bush has bestowed on his intelligence czar, John Negroponte, broad authority, in the name of national security, to excuse publicly traded companies from their usual accounting and securities-disclosure obligations. Notice of the development came in a brief entry in the Federal Register, dated May 5, 2006, that was opaque to the untrained eye.
The solution is easy - Don't play the game - Buy Gold!
Actually it will be a matter of national security to sieze your gold and ban any future sales. So wrong answer there.
<cough> a new gold 'tax' or forced turn in for fiat currency.
Count on it.
FML.
Few covered.
Sorry Ben.
The most revered rule of daytrading, the stop, paradoxically is the same reason bulltards are able to pull off bullshit ramps in this bear market.
If more bears that don't have to trade everyday would stop levering and sit on their shorts, they will make a lot of money when it all crashes. If one really believes what is going on, can't last without a market crash, then why feed the beast.
Interestingly Quants in Quantum particle physics sometimes refer to particles that seemingly can be in two places at once. Theories about space travel by threading through worm holes in folded space could make time travel possible some day. In fact, many physicists believe that there is no time, just space, and matters interaction.
The market will fall.
The daily interaction of the various participants including quants, just warp the time factor by creating volataility. The market wants and needs to go down. Market participation just drags the time factor along.
Black swans are worm holes in the folds of cycles.
Meantime the SEC is fighting off a roll back of their exemption from the Freedom of Information Act. Most transparent presidency yet. sarcasm on high
The beauty about laws is that they can be modified, repealed, or superceded at will by the governing body. Ain't that somethin'?
Did you finally give up on trying to short this POS ponz? I hope so. And you're right...if politicians find themselves on the losing side of some law- fuck it- they simply change it. And that's how it's always been in the elite v peasant crusades.
And the nationalization of 401k accounts and pensions in 3...2...1...HAPPY ARGENTINA!~
Imagine 10 players at a poker table. No limit. Nine of the players buy in for 1000. This is the only money they have- lose that and you are out of commish-permanently. One player has billions. Each time one of the nine has a decent hand- the bully just pushes all in knowing that everything you have is at stake- but the bully's funds are unlimited- losing doesn't have the same financial death spell it does for the other nine. In fact, the bully might eve let you win a few times because sooner or later he's gonna take it all from you. You represent nothing to him- your small stake inspires no fear whatsoever.
That's what the shorts are up against. Financial death- bullying. You are only going to be right once, that's your royal flush- economic collapse. When are we gonna catch that hand? You don't know and since you can't predict it you simply can't expect it.
Capiche?
You forgot the marked deck.
You can always bluff, and if they call it, default by running out the door guns ablazing.
One of these days, the dam will burst and the shorts will win a huge one.
Personally, I think we are seeing a massive pump in the markets before a grand old dump coming. It is time for the elites to run out the unwashed masses as hedge funds and HFTs making money. The elites own this club and plan on keeping it theirs! Fool everyone to buy in as most investors are along with the shorts being driven out, the market will fall without any break to stop it. After the carnage, repeat. Heads the elites win, tails the elites win.
What goes up must come down. I dont know how a lot of people have concluded that this is it, first bubble in history that wont pop. It will pop, just dont know the date yet.
After their running dogs, the politicians, con the people again.
Keep calling that top, as you have been since the day I registered for this site. Even a blind squirrel eventually finds his nuts.
If you're right Tyler, then we should soon see a 400 point drop in the dow these next 2 to 3 weeks.
But I'm sorry to say there is a flaw in that theory. Most big financials are down to their 200 lows!
Some of you may have noticed that China stocks, in particular, have all been getting severely Hammered down. Signs of coordination, signs of some knowing its been "OK'd", a new level of Bashing, where they're outright called Frauds, liars, etc...., and rare to find any with a double digit PE, but plenty with a PE of 4 - 5, while growing at 50%+
Is this some sort of unofficial/official policy move being made to add weight, to get China to move on their currency? I get the feeling this is being "allowed", and at the same time FDI Inflows iof US Big Money nto China is breaking another record, year after year a new record, since at least 2006
Is it correct saying that without bears out there we would see weaker rallies?
Let's try to disaggregate rallies in their components:
1) 70% fed intervention
2) 29% bears short covering (this sometime include me)
3) 1% the last sucker intervention
Do you agree?