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Pick Up In SPY Short Interest
Data Explorers, via Alphaville, is demonstrating a rapid pick up in SPY shares on loan, a proxy for Short Interest. Specifically, the service points out a 24% increase since September 7. Of course, with periodic short recalls such as the one in IYR by UBS, it is only a matter of time before the banks create an artificial end to any such comparable bearish momentum trend in any of the highly trafficked ETFs. Stay tuned as we find out where the first SPY recall of the day will occur.
h/t Lizzie
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If you hold your collateral with a third party custodian, and the security loan agreement doesn't give the lender the right to call the loan absent a default (e.g., breach of collateral requirements), what can the security lender do except yell and make threats? Why isn't this like a lender on a line of credit bitching they want their money back early? Too F------ bad, I say.
Geez they have a dozen ways to crash markets today.
I'm now more convinced than ever the market will never be allowed to go down again in any significant way. It's actually quite amusing at this point.
As the Fed financed Treasury dollars continue to flow into the rigged casino formerly known as the DOW and S&P 500, the perceived value appears to be ever increasing but the real value continues to decrease with the coninuously trashed dollar. I'd imagine that China must be shedding dollars as quickly as possible before the crash. This administration is showing itself to not care about anything other than paying off favors. Goodbye dollar fiat currency. I love QE 2!
They are already, read that China's USD holdings are down to 700 billion from 2 trillion, practically 2/3 done away with.
Indeed, I am short the SPY...
Must read article regarding hundreds of "ghost ships" sitting idle off the shore of southern Malaysia.
http://www.dailymail.co.uk/home/moslive/article-1212013/Revealed-The-ghost-fleet-recession.html
If I do recall correctly, the Nasdaq tripled from 98 to 00 because of people's willingness to sell short thinking the valuations could not hold. Why again do some continue to short when there is really no reason outside of some of the same reasons given back then.
As long as our Masters are manipulating the crap out of our money to the benefit of the few I can see no reason to sell short. It just adds fuel to the rising fire.
Sure, it'll eventually blow to pieces, but when? There certainly will be plenty of time to take advantage of the coming bust but only after the averages break down. Until then it's a longs game.
How do you gather that selling short adds fuel to the fire?
Hey there Anonymous...
I think what Gabirle Gray was getting at, was that throwing down short in the face of a government ramp-job will eventually result in 'stale bears' and further short-covering.
For the moment I don't agree - although there is probably a tony bit mpore upside before the nuffnuffs charge.
So check this out...
The e-mini S&P Dumb Bull Ratio (Longs in Non-Reportable OI) is reasonably high ,but not at 'gut the nuffie' levels yet.That's why we could get one more short-covering move, but it won't be big.
For example: pre-Lehman, longs were over 70% of non-reportable (nuffnuff) open interest... and that dropped to 28% in March (at the low... nuffnuffs always short the low and buy the high).
Non-reportables in total OI in the ES is still a tick under50%: the really dumb money is still not 'engaged' in the post-March long-fest. And we all know - you can't gut the small fish until you've got 'em on the hook.
My guys have been scalping shorts for a while (intraday in the Australian SPI, even on up days), having been long DAX since Feb 22.
Cheerio
GT
GT's Market Rant
PS - I have removed the access restrictions to my Dumb Bull Ratio (and other commodity sentiment chart) pages so that folks can have a look at teh Dumb Bull chart... I've switched off the overlay of the price chart so that my subscribers don't get up in arms.
Let's give credit where credit is due.
I think the job Rahm did working the phones early this a.m. with geithner, blankfein, dimon, et. al. is commendable. after asian markets swooned and the futures were in the shitter, he did a great job getting the markets into the green.
I imagine he made it very clear that when his boss walks into Federal Hall this a.m. next door to the NYSE, the green better be showing or there would be total hell to pay.
good job Rahm, I am impressed.
That's a very interesting comment, deadhead. And I wouldn't be terribly surprised that it isn't too far from the truth, either.
As sad as that may seem.
actually you should be ashamed for not knowing about closing the gaps.
buy a 'trading for dummies' book.
jesus, i am bleedng from the eyeballs listening to this shit.
Lizzy makes a good point; Rahm could well call a bunch of institutional shareholders to request recalls of stocks sold short.
1. Stock loans are usually not term loans, so the lender generally can call them at will. http://faculty.chicagobooth.edu/finance/papers/short.pdf
2. Managements are known for persuading institutional shareholders to recall stock lend under stock loans; no reason Rahmn couldn't do the same. http://fisher.osu.edu/~diether_1/b822/overpricing.pdf
goldman et al must be licking their chops knowing there are more shorts to squeeze, enabling them to take spy that much higher from here with taxpayer-provided funds. ughhh...
Why can't the "manipulators" be the SPY shorts be?
If we in the blogosphere are reticent to short and "fight the fed", the short interest could just indicate the big players are preparing to ride this one down as profitably as they rode it up.
I seem to remember, that back in late June early July, SPY, Q's, IWM, all became HTB with IWM still being HTB now for close to 3 months. What does that tell you? Just one form of market manipulation.
Like I said in another post, I am only day-trading to the long side, longer term on the short side (and staying small). I'd rather miss some of the down leg than be taken out again by the GS trade-bots.
The only question is when it will become law that you can only buy american made cars and you can only ever buy stocks? We already have "you can't go bankrupt if you have X employees or Y amount of RE or contributed N to the controlling political power".
How idiotic to publish these numbers at all ! Welcome opportunity to all long players to beat the sh.t ou of the shorts !