Now that everyone knows that the only real macro trade is frontrunning Brian Sack, and fundamental analysis and its various derivatives are as dead as the dodo, there is one more trade that is a sure way for investors to make money: piggyback on short squeezes, especially with the assistance of State Street and the likes, whose only job it appears is to make increasingly more stocks impossible to borrow and forcing outright buyins in more and more names (more on that shortly). As shorts across all sectors have been trampled by endless rounds of liquidity, without regard for logic or bubble valuations, the desire of the bears to press a market that is now pricing in about $3.5 trillion in risk asset support (courtesy of QE 1, Lite and 2) or about 30% of the total market cap, isolating the names that have the highest Short Interest/Float and jumping on board may be the one profitable trade in addition to selling various CUSIPs to the Fed's gaping black hole. So what names should one invest in (and we use that in the most derogatory sense imaginable)? Luckily, Morgan Stanley has updated their most shorted names presentation. Keep in mind that these names are massively shorted for a reason: they are all mostly bubbles and deserve to trade orders of magnitude lower. But such is the reality of a market bubble - there is no reality. It is all just hype and "story" themes, not grounded in fact whatsoever. But that does not matter. It is all about the Fed. So without further ado, here are the names that will likely see the most indiscriminate offer lifting as more and more shorts are pulverized by Brian and his henchmen.
First, we present the listof names that have the most of their float shorted, spread by market cap bucket.
Buying a basket of these most shorted names virtually guarantees that as the Fed's dollar destruction continues one may, just may, recoup some of the losses in the dollar's purchasing power, however unlikely. It is now clear the Fed will stop at nothing before destroying capital markets, the middle class, and the reserve currency.
For a more granular list, one that passes through Morgan Stanley's Adjusted Short Interest screen, here are the 100 or so names by various industries that one can be certain will be subject to State Street and Prime Broker buy in requests as soon as the next few days. After all, there are lies to be uttered over the next few weeks that the market is up, and the economy must be improving, so that the midterm elections go smoothly and as planned:
And for those wondering why financials, tech and consumer discretion are the "leader" sector in the market, wonder no more - they just happen to be the most shorted ones. And how else can State Street justify its massive bonuses unless it manages to incite a industry-wide buy in. After all, they have been doing so well for the past 18 months - why stop now? Expect much more outperformance from this three-headed guard dog of Hell as the government continues its outright war on unpatriotic and racist shorts.
And in case it is not clear, we present the above data with supreme disgust. Disgust aimed at that one criminal organization that has made the stock market a farce, wrapped in a joke, inside a tragicomedy.