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Did The Shorts Capitulate?

Tyler Durden's picture





 

We noted yesterday that the 'gains' that shorts had temporarily enjoyed from the start of April were rapidly squeezed out since the gap-open lows on NFP Friday. However, yesterday's massive outperformance of the Russell 3000's 'most-shorted' names relative to the index itself suggest more than a few weak hands threw in the towel. Desk chatter this morning was that this was the largest cover day since June. Of course, this morning's ramp suggests there are more stops and shorts to be chewed through yet...

Intriguingly the short cover stopped (or slowed) as the FOMC Minutes were pre-released... (around 2pmET)

 

Charts: Bloomberg

 


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Wed, 04/10/2013 - 14:12 | Link to Comment bigrooster
bigrooster's picture

I sold my SPXU and TVIX positions this morning and went all in BITCOIN!  The market will crash tomorrow.

Wed, 04/10/2013 - 14:15 | Link to Comment MortimerDuke
MortimerDuke's picture

No offense, but I sure hope so.

Wed, 04/10/2013 - 14:19 | Link to Comment akarc
akarc's picture

Always my luck.

Wed, 04/10/2013 - 14:45 | Link to Comment DeadFred
DeadFred's picture

Tyler, please post when you see what looks like the blow off top :)

<twiddling thumbs waiting>

Wed, 04/10/2013 - 14:14 | Link to Comment fonzannoon
fonzannoon's picture

The cool thing is that markets have reached such a high point that they can spark a 2 percent correction and the suckers will come flying in thinking this is the big one and they can just burn them all over again.

Bernanke can continue with this back and forth bullshit exit debate for an eternity. This will be the mother of all bubbles and we may just be in the early innings. I know no one wants to believe that.

Wed, 04/10/2013 - 14:58 | Link to Comment TheMeatTrapper
TheMeatTrapper's picture

The more I watch the bankers and their ability to keep the charade going, the more I tend to agree with you. My prepper friends scoff at me when I tell them it may take another 20 years for the market to crash. The problem is that "nobody" (except a few of us) really want an honest market. The people, the governments, the corporations and of course the banks - almost everyone wants the charade to continue forever rather than take their medicine. 

 

Wed, 04/10/2013 - 15:04 | Link to Comment waterwitch
waterwitch's picture

$5/gal gasoline won't be too kind on the stock market. Coming soon to a pump near you.

(you can ignore this Californians and Hawaiians and EU because I know you're way past that)

/s

Wed, 04/10/2013 - 15:09 | Link to Comment fonzannoon
fonzannoon's picture

Nobody cares. if earnings are harmed by $5 gas they will just fudge them.

Wed, 04/10/2013 - 14:14 | Link to Comment Yen Cross
Yen Cross's picture

      It's just a big circle-jerk for the P/Ds anyways. They each sacrifice one day a month in the barrel, to give the illusion that there are still shorts in the market.

Wed, 04/10/2013 - 14:14 | Link to Comment fonzannoon
fonzannoon's picture

I guess it's just the PD's and myself in this market Yen. I have some gains that I never thought i'd ever see and some short hedges that are like an anchor dragging along the bottom. All I have to do is take off the hedges yen and I can sail into the sunset. It will be so beautiful Yen. But for some reason I just leave that anchor out there.

Wed, 04/10/2013 - 14:18 | Link to Comment Yen Cross
Yen Cross's picture

      I have a few anchors myself Fonz. I keep waiting for the... caugh caugh... retrace, but it's no where in sight.

Wed, 04/10/2013 - 14:52 | Link to Comment DeadFred
DeadFred's picture

One missle flies through the air and the market will shut down on the first trade of the day. Just hope your counter-party is still solvent when you cash in. Each day gets frothier than the last.

Wed, 04/10/2013 - 14:13 | Link to Comment Dr. Engali
Dr. Engali's picture

The amount of fools willing to step in front of the Bernank and be seperated from their money simply amazes me....Here's a tip...when the time comes to short this illiquid bitch ..it will be too late.

Wed, 04/10/2013 - 14:35 | Link to Comment fonzannoon
fonzannoon's picture

I am not stepping in front Doc. I am in the sidecar. It's me and the Bernak doc. There is room for one more. Don't worry he promised he would tell me when he was about to hit turbulence and he said he would pull over so I could get out.

Great news Doc! Have you heard?  Bernak is going to shove you into that sidecar.

"Fidelity Investments President Ronald O'Hanley on Wednesday proposed that U.S. lawmakers increase the default savings rate to at least 6 percent in retirement plans, double the rate laid out in landmark legislation passed in 2006.

O'Hanley also said Congress should require programs that automatically increase savings rates in U.S. retirement plans. While he favors an opt-out provision, he said inertia tends to keep U.S. workers on the right savings path once they are automatically enrolled in a 401(k) retirement plan, for example.

A key problem, as he sees it, is that Americans are not saving enough to support themselves in retirement. He said Fidelity's research shows nearly four in 10 retiree households do not have sufficient income to cover their expenses."

It's not that they can't, apparently they just chose not to do so.

Wed, 04/10/2013 - 14:16 | Link to Comment ThunderingTurd
ThunderingTurd's picture

I couldn't agree with you more.  Betting on a pullback is throwing bad money after bad. 

Wed, 04/10/2013 - 14:32 | Link to Comment The Tao
The Tao's picture

So you're saying that the technicals don't count any longer?  ES is 9+% over the 200 Day MA, how much longer can that be sustained?  There is nothing supporting this move, especially today, but the QE, nothing in the least.  The farther that they push it, the harder it will fall.

Wed, 04/10/2013 - 14:54 | Link to Comment Straw Dog
Straw Dog's picture

The Tao

Agree. There is serious deterioration in the fundamentals, and the technicals signal an oncomming fall. The idea that Bernanke and other central banks can support the equity markets strikes me as a unusual manifestion of "It's different this time"

Wed, 04/10/2013 - 15:05 | Link to Comment The Tao
The Tao's picture

Straw Dog,

"Serious" doesn't do it justice.  There are macro divergences between the underlying economic data (Jobs on friday, ex.) and there are AMAZING diverences in nearly every chart, from the monthly (long term) to the fast tick/time charts.  But, the market WILL NOT react.  It's not like the divergences become continuations, they just DO NOT REACT.  But, they will, and when they do it's going to get ugly.

Wed, 04/10/2013 - 16:40 | Link to Comment ThunderingTurd
ThunderingTurd's picture

I don't disagree with your observations, but it can last as long as the data continues to be shrugged off (both technical and qualititative).  No reason we should have ramped after Friday's open, but we did.  Trading since Friday has been humbling.

Wed, 04/10/2013 - 18:19 | Link to Comment akarc
akarc's picture

"Trading since Friday has been humbling."

Even more humbling, but also very alarming is the lack of "reason" for it. 

Ramps like this when one accidental missle firing fromo N. Korea can change the whole landscape? When fundamentals have deteriorated not improved.

How long can 85 billion be pumped into the system until crash or super inflation have the same results?

My little money up on a ramp or down on a pullback means nothing compared to the real players.

There is very dangerous game being played in here and forgive me if I do not believe it is to restore balance to the economy.

Wed, 04/10/2013 - 18:40 | Link to Comment chubbyjjfong
chubbyjjfong's picture

I tend to agree with ekm. Why would the big boys want to crash the system in an environment where they can buy every commodity with easy printed money. They are buying and stacking oil, property (toxic MBS loans), companies, businesses, gold, equities.. everything. An outside trigger is what is gonna blow this thing up and the elites can just sit back, watch and buy with their feet up. Until an outside catastrophic, uncontrollable event manifests itself, this charade will continue. When it happens, it just makes it all the easier for the elites to swoop in with everything and control the masses with a new system. 

Wed, 04/10/2013 - 18:59 | Link to Comment The Tao
The Tao's picture

"There is very dangerous game being played in here and forgive me if I do not believe it is to restore balance to the economy."

Very well said akarc!

One thing that has always frustrated me is when people (and the MSM) make cracks and jokes about how "stupid" politicians are, and how the actions they're taking don't make any sense.  I tend to throw banksters in that mix as well.  Sure, their actions seem stupid, inept, and down right reckless when viewing them through an altruistic lens.  The people tend to think that the people in power like them, need them, and want them to be happy and healty.  When viewed through that lens, their actions do seem odd, to say the least.  But, if you look at their actions through a lens of evil (for lack of a better word), their intent becomes all too clear. 

This is Neofeudalism at its finest guys.  The American Experiment was one of self-determination and freedom, and is the antithesis of how the PTB want the world structured.  There is a tremendous amount of wealth stored in the American Middle Class, and wealth brings self-determination, and humans determining their own lives chaffes the PTB like a torn pair of boxers on a 100 degree day.  The actions that we see by Bernanke et. al. is about bringing the middle class under the yoke of neofeudalism, nothing more. 

Wed, 04/10/2013 - 14:19 | Link to Comment The Tao
The Tao's picture

So you're buying high Doc?  Sounds like a sound strategy to me.  Oh wait, forgot this is Bizzarro World in which up is down, good is bad, and black is white!

Wed, 04/10/2013 - 14:56 | Link to Comment Dr. Engali
Dr. Engali's picture

Obviously you can't comprehend my my statement. Maybe you should read it again slowly and think about it.

Wed, 04/10/2013 - 15:03 | Link to Comment fonzannoon
fonzannoon's picture

stop fiddling around and get in the sidecar dammit!

Wed, 04/10/2013 - 15:20 | Link to Comment The Tao
The Tao's picture

"The amount of fools willing to step in front of the Bernank and be seperated from their money simply amazes me..."

I comprehend your statement perfectly; you're calling shorts "fools."  To which I asked, "are you buying here?"

You don't ALWAYS have to be an arrogant prick do you?

P.S. -- someone that cannot spell nor use words properly has a lot of nerve to call into question the intelligence of another!

Wed, 04/10/2013 - 15:29 | Link to Comment Dr. Engali
Dr. Engali's picture

Yes I'm calling people who move big positions fools for shorting this market. It's too illiquid and they can be easily squeezed. If you're a retail investor then this is a great market for picking your spots.

Speaking of arrogant pricks and people who doesn't know the proper use of words ... I suggest you look in the mirror.

Wed, 04/10/2013 - 15:38 | Link to Comment The Tao
The Tao's picture

"Speaking of arrogant pricks and people who doesn't know the proper use of words ... I suggest you look in the mirror."

I am looking in the mirror, and I see a man who has command of the English language.  Show me any improper word usage in my posts Doc.  You, by contrast, try to rebutt me and AGAIN display the very point that I brought up.  Keep trying though, you'll get it one of these days.

Wed, 04/10/2013 - 15:53 | Link to Comment Dr. Engali
Dr. Engali's picture

Allow me to explain it to you slowly, and I will operate under the assumption that you understand what liquidity is. This market, in my view, should be around S&P 600. However the fed is pushing this market up on vapors. The higher they push it the more illiquid the market becomes. As they push the market higher the shorts are tempted to jump on any little downtick thinking " this is the big one". The lack of liquidity in the market makes it easier for the fed to squeeze them out and that brings me to the root of my point; when the time comes to short this market it will be too late..... The gap down will be stunning and in my view it will all probably happen when the market is closed.

Wed, 04/10/2013 - 16:14 | Link to Comment The Tao
The Tao's picture

understood, and well said.

Wed, 04/10/2013 - 16:26 | Link to Comment Dr. Engali
Dr. Engali's picture

Now that we cleared that up, I'm going to apologize if I came across like a prick. That was not my original intention.... maybe I read something into your first post that wasn't really there.

Wed, 04/10/2013 - 16:35 | Link to Comment The Tao
The Tao's picture

I too owe you an apology my new friend (I hope).  I have to confess that I am ticked off because I am shorting this market as I am a technical trader and there are divergences EVERYWHERE, in every chart, yet the mkt will NOT respond.  It's quite befuddling, to say the least.  I know that the technicals will, at some point, exert their pull on this market, but good lord is this a trying time.  I cannot buy at the top.  I will not, and should not.  Yet there are monkey's in the market who are making alpha hand over fist going long and it pisses me off.

Wed, 04/10/2013 - 16:45 | Link to Comment Dr. Engali
Dr. Engali's picture

Hey I'm with you there. Everything about this market screams "short it", however I have been handed my hat going for the big short in this market too many times. I chose a different strategy, and that was to buy the dips and sell the rips (God I hate that terminology ). I pick my spots for a quick short and get the hell out of the way.

Wed, 04/10/2013 - 17:00 | Link to Comment The Tao
The Tao's picture

I hear you Doc.  I am just not used to buying from the top, it's screams "wrong" in my mind.

Wed, 04/10/2013 - 18:24 | Link to Comment akarc
akarc's picture

Well so much for this ADD, dyslexic one fingered typist

Wed, 04/10/2013 - 14:15 | Link to Comment johnnymustardseed
johnnymustardseed's picture

No they got word from the FED to hit Bitcoin and of course gold and silver again

Wed, 04/10/2013 - 14:16 | Link to Comment bonzo112358
bonzo112358's picture

Not yet but pretty damn close to here.  Walmart short only thing working for me today.  A really nice double top forming around $78.  HD also forming a double top as well.  My finger is on the exit button.  Can't take much more.

Wed, 04/10/2013 - 14:23 | Link to Comment akarc
akarc's picture

I just keep telling my self gravity does exist, gravity does exist. Obviously Im wrong.

Wed, 04/10/2013 - 14:57 | Link to Comment DeadFred
DeadFred's picture

When enough of us ZH permabears start getting weepy and dispondent saying "This rally will never end" then you know it's about to. The algos are reading our comments so everyone start sobbing and send the machines a sell signal.

Wed, 04/10/2013 - 15:09 | Link to Comment fonzannoon
fonzannoon's picture

Bullshit. As someone pointed out the Argentine stock market rallied 300% on no volume a few years ago. Zimbabwe has the greatest stock market ever. That's what happens when you print money. How did the shorts do there?

Wed, 04/10/2013 - 15:29 | Link to Comment Fiat Burner
Fiat Burner's picture

The FED has been debasing the currency ever since its creation in 1913 and they haven't been able to prevent bear markets in stocks. Delayed them, maybe. So why is it different this time?

Wed, 04/10/2013 - 15:34 | Link to Comment fonzannoon
fonzannoon's picture

They were able to stop printing at certain points and raise interest rates if necessary.

Wed, 04/10/2013 - 14:16 | Link to Comment rubearish10
rubearish10's picture

Shorts?? That's a RED button, so no such thing. 

Wed, 04/10/2013 - 14:17 | Link to Comment enloe creek
enloe creek's picture

rolling into bitcoin y'all

 

Wed, 04/10/2013 - 14:18 | Link to Comment thismarketisrigged
thismarketisrigged's picture

look at this quote by this douchebag art hogan in this article.

 

http://www.marketwatch.com/story/stocks-rise-lifting-sp-to-intraday-record-2013-04-10?link=MW_home_latest_news

 

is this guy fucking serious? he says no catalysts for this market to go lower.

 

i guess he was in a coma for last weeks terrible data, including the worst jobs report i have seen in ages.

Wed, 04/10/2013 - 14:25 | Link to Comment Zexe
Zexe's picture

weak data=more QE= equities higher after 4 yours you should have known it by now

Wed, 04/10/2013 - 14:30 | Link to Comment thismarketisrigged
thismarketisrigged's picture

i should have known by now, but you would think eventually, maybe, just maybe, this market would trade on fundementals. guess not though.

Wed, 04/10/2013 - 14:34 | Link to Comment Zexe
Zexe's picture

remeber, we are out of the realm of real value and only talking nominal value, sky is the limit, anything can happen , price discovery is dead, new age new models.

Wed, 04/10/2013 - 14:52 | Link to Comment The Tao
The Tao's picture

"new age new models..."

Model have a very bad habit of failing at the absolute WORST time.  Garbage in, garbage out.  The new model is to jack the SM up so that two things happen: 1) the Banksters can generate even more profits; and 2) most importantly, to try to trick all the soon-to-be retired Boomers back into the markets.  The PTB DESPERATELY want to destroy these middle-classers and take EVERYTHING they've worked for over the past few decades.  If they just run the market up long enough, like moths to a light (they hope) the Boomers will call their guys and say, "I am back in Baby!"  At that point, they'll yank the rug out.

Problem is, fool me once, shame on you...fool me twice, shame on me!  The Boomers aren't buying it, and the PTB are pushing the markets past all economic support.  When they push it too far, and that point is coming very soon, the true nature of the economy will show through, and it will scare people even more.

Wed, 04/10/2013 - 16:13 | Link to Comment Dr. Engali
Dr. Engali's picture

" Model have a very bad habit of failing at the absolute WORST time"

Should we stop here, or do I need to pull a line from all of your posts?

Wed, 04/10/2013 - 16:28 | Link to Comment The Tao
The Tao's picture

It was a typo.  There is a difference between a typo and misspelling "separate," and using "people who doesn't"...but continue if you must.

Wed, 04/10/2013 - 18:32 | Link to Comment akarc
akarc's picture

I just enjoy you all's comments :).  I try to focus on the message rather than critique the form in which it came. 

Wed, 04/10/2013 - 14:20 | Link to Comment hungarianboy
hungarianboy's picture

ECB: German households less wealthy than Cypriots

 

http://euobserver.com/economic/119751

Wed, 04/10/2013 - 14:38 | Link to Comment css1971
css1971's picture

Could easily be true. e.g. Germans rent, they don't buy property. They also like to buy expensive cars which depreciate quickly. They keep their cash in the bank which lends it out to the Greeks and Spanish on the cheap.

To be perfectly honest they're not the sharpest tools in the box on average. Good workers though but wildly over educated. Beer, rented flat, Audi, a bit of football violence and they're happy to do the 7-> 4 5 days a week.

Wed, 04/10/2013 - 14:21 | Link to Comment fonzannoon
fonzannoon's picture

If we had a 25% correction tomorrow the S&P would still be at 1200. That is insane.

Wed, 04/10/2013 - 14:25 | Link to Comment Zexe
Zexe's picture

no, it s just the result 85 billionper month forever pledge.

Wed, 04/10/2013 - 14:27 | Link to Comment akarc
akarc's picture

And a heap of people would still be out of work. Double checking my own sanity. 

Wed, 04/10/2013 - 14:29 | Link to Comment ekm
ekm's picture

It's called central planning.

Been there, done that.

 

Who's the idiot shorting a Government Owned Property like the Stock Market?

Wed, 04/10/2013 - 14:44 | Link to Comment rubearish10
rubearish10's picture

Slightly less insane.

Wed, 04/10/2013 - 14:23 | Link to Comment The Dancer
The Dancer's picture

Its possible that stocks won't top out until they go parabolic like bitcoin did...maybe not quite to that extreme, but close...it would be nice to see some gap up days.....and a few short holders jumping out of buildings...or ending it all in the toilet like H.L. did so long ago...

Wed, 04/10/2013 - 14:34 | Link to Comment Joe Davola
Joe Davola's picture

The King cashed in his chips in the toilet also

Wed, 04/10/2013 - 14:38 | Link to Comment AynRandFan
AynRandFan's picture

But, are there any investors in the market who make those kinds of bets anymore?  My impression is no, there are not.  We have algo's controlling virtually everything and they are nothing but channel watchers.  Straight line advances far as the eye can see.

Wed, 04/10/2013 - 14:24 | Link to Comment Hongcha
Hongcha's picture

Perhaps shorting, like bucket shops and tickers, is a relic of the past.  Like Fonz said above, the computers can just rake accounts like chickens in the yard and turn up short positions like so many grubs; then hone in.

Wed, 04/10/2013 - 14:32 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

There is no perhaps about it.  If you are a little guy and you try to short the stock market, they know and will destroy you.  This isn't just pump and dump anymore.  They know where you are in real time.  It's like a financial drone strike.  You are the goatherder in the grainy black and white video.  One minute you're there, the next, you're not.

Wed, 04/10/2013 - 14:24 | Link to Comment monopoly
monopoly's picture

For the life of me I do not understand why anyone shorts these markets. 4 years now. The funny money keeps coming. What will it take for those dedicated to shorting this market to just stand aside. It is idiotic, a money loser and not worth the stress. These are not markets, charts only work long enough to stop you out. i have 100 stocks on my screens that are shorts by all that is right and true. But I short Nada. We are dealing with inmates in charge, insanity and investors who believe we are in Shangri La. You cannot fight that. We are lied to every day on MSM, and it is working! but until the truth is out in the open, up we go. 

My way of shorting this market is to have physical and miners. And we all know we have been hurting for a while. But that is what I believe is the right investment long term and that does not change with a day like today. Day trading this market to me is a death knell. I just do not get it. And that is after over 30 years dealing with this shit. LOL>

Wed, 04/10/2013 - 14:29 | Link to Comment fonzannoon
fonzannoon's picture

It is all about the media. They have successfully shaped the way people think. Stocks good. Gold bad. Economy good. etc.

In a very literal sense the market now reflects the media's perception, and the brain absorbs it and has successfully (in a very awful sense) rewired itseif to believe what it is being presented with.

Wed, 04/10/2013 - 15:39 | Link to Comment LinesOnCharts
LinesOnCharts's picture

That's what the market's all about.  Whether someone buys for the right or wrong reason, it drives the market up.  Gotta keep longing this bronco until people (or governments) run out of money to keep pushing up the prices.  Then we can short the giant smack in the SPX's face all the way down.

Wed, 04/10/2013 - 14:34 | Link to Comment AynRandFan
AynRandFan's picture

In the olden days, when markets existed, you had to be twice as smart to short because you not only had to know when an equity was over-valued but you also had to know WHEN it was about to turn down.  Now, it is virtually impossible to short unless you basically stay out of options and use non-conventional means of shorting the entire liquid asset market, like PM's, land, or maybe black market sales of guns.

Wed, 04/10/2013 - 14:38 | Link to Comment Canucklehead
Canucklehead's picture

You short the market because money is cheap.

In an easy money environment, the market will be primed because of risk takers. Pick your spots and short those that are primed. If there is a geopolitical hickup, the market drops and you can close your short easily. If you were long, that market drop might cause you some concern.

It's all about volume.

Wed, 04/10/2013 - 14:41 | Link to Comment The Tao
The Tao's picture

"It's all about volume."

Right.  Notice what Tyler shows us nearly every day.  The rallies are ultra-low volume with tiny average trade sizes, and the volume spikes on those rare "sell-off" days.

Wed, 04/10/2013 - 14:26 | Link to Comment Catullus
Catullus's picture

Ramp jobs.

Is this fucker up 20% since the presidential erection?

This is just a bull market. It's not a secular bear market. It's just a hedged up bull market. It might just be the year to sell in may and go away.

I'm waiting for two negative weeks in a row. That's your sign.

Wed, 04/10/2013 - 14:27 | Link to Comment razorthin
razorthin's picture

Ah, fucking pansy shorts.  Ease up on the margin and use 1X inverse instead.  You need to stick this pig fucker.  You will be richly rewarded.

Wed, 04/10/2013 - 14:29 | Link to Comment Seeking Beta
Seeking Beta's picture

Lot's of short traders turned alcoholics in the pit today. 

Wed, 04/10/2013 - 14:28 | Link to Comment monopoly
monopoly's picture

Ya gotta luv this guys.

Market Watch

Retailers brace for disappointing March sales

Bullish. BUY> Fucking insane.

Wed, 04/10/2013 - 14:34 | Link to Comment thismarketisrigged
thismarketisrigged's picture

dont worry, they will say the retail store expectations are priced into market.

 

that is why we r only up 150 dow today, if they were expecting good sales, we would be up 1000 plus.

 

at least that is what the criminals will say when the bad numbers are reported. however, if they do surprise, watch out, this thing will see 16000 by monday.

 

its become like watching a comedy, i laugh instead of get upset of the joke its become

Wed, 04/10/2013 - 14:30 | Link to Comment scatterbrains
scatterbrains's picture

shorts capitulate as the SPY kisses the imaginary line that projects out from the  highest points of the last 15 years. 

Wed, 04/10/2013 - 14:31 | Link to Comment ebworthen
ebworthen's picture

So what did the FOMC minutes say?  More QE?  QE until Bernanke grows a head of hair and shaves his beard?

Here's an idea:  don't short the market because it only makes it go up.

Wed, 04/10/2013 - 14:35 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Nope, I am short TSYs since the post cyprus low print on employment.

Short the 30 years at 2.85 YTM, cover when they get around 3.05.

Keep a net short position though, a core net short long term and trade around to improve the average.

YOU WILL SHORT THE STOCK MARKET IN 2014!!!

That is when the treasuries are starting to fall more than desirable because the inflation gets a bit annoying. At that point Gold is back to 1900, sell a good portion of your Gold as it rises with inflation and the eoconomy, short more and more short term, say 2 years, and start shorting the market.

When GDP falls while interest rates keep rising, start to unwind your short on Equities and start to ramp-up your Gold again. Then cover all of your short term gov bonds short. The TSY long term will have had a shrot term rally and short them again.

We have another 2-3 expansion-recession cycles before the USD dollar is totally toast and needs an international bail-out. Something like Britain in the end of the 1960s...

 

Wed, 04/10/2013 - 14:36 | Link to Comment Bicycle Repairman
Bicycle Repairman's picture

Shorts are public enemy number one.  They have the tools to hunt down unsanctioned shorts.  You'll be a greasy spot in short order.  Want to complain about it?

LOL.

Wed, 04/10/2013 - 14:36 | Link to Comment pragmatic hobo
pragmatic hobo's picture

... for fun can you print the list of most shorted stocks?

Wed, 04/10/2013 - 14:39 | Link to Comment WhiteNight123129
WhiteNight123129's picture

First Solar was very heavily shorted, (I was long). People have to be out of their mind to short the Solar industry, or thye have to listent to Fox news Solyndra-Obama foaming rage.... I do not care about Obama, but it is interesting to see what is popular as a short yet totally idiotic...

 

Wed, 04/10/2013 - 14:48 | Link to Comment ebworthen
ebworthen's picture

Are you long Fisker too?

Wed, 04/10/2013 - 15:07 | Link to Comment WhiteNight123129
WhiteNight123129's picture

Well, I have studied quite a bit of polychristalline versus monocrystalline versus second generation solar (Thin film) and now third generation (heterojunction, amorphous silicon). Fascinating stuff, actually 10 cent a kilowatt by 2015, by 2020, coal plants will be something of the past....

I have NO IDEA what FISKER is about. It is about photovoltaic or electromagnetics? As you probably know Solar is unique in the sense that it does not use mechanical force (Wind) or conventional thermodynamics to produce electricity.

What people fail to comprehend is that actually right now it is cheaper in Chile to build a solar plant just to save teh cost of importing nat gas from teh US. That is nice, I guess people will not have to spend so much effort to ship gas to Chile, it is cheaper to install thin panel and save teh gas for night electricity output.

I will check it out, maybe it is something interesting.

I noticed that people were shorting a company with 12 dollars of cash per share, which is eranigns positive cash flow positive, and with 5 USD of earnings per share. That is the most idiotic short I have ever seen...

 

Wed, 04/10/2013 - 15:11 | Link to Comment WhiteNight123129
WhiteNight123129's picture

I have check and I fail to see the value proposition.

As much as Solar panel do not need subsidy anymore.

People are shorting the industry as a whole because the cost are going down. They should short it if hte cost were staying flat. How about shorting INTEL because their processors are cheaper and cheaper.

Actually the cheaper and cheaper the panels the more you will see companies ditching their nat gas consumption for solar like in Chile.

In Saudi Arabia because there is no fresh water, they have plants which are burnign diesel for electricity.

Gas is nice in the US but too expensive after shiping to be really interesting. However since the cost per watt was at 1.8 USD back in 2007 and expected at 0.4 cent in 2015, that means a lot places in the world where water is scare and sun is abundant (like parts of India or Eastern Australia) where no susbidies are necessary at all.

As for fisker, I am sorry I will pass, looks weird and very narrow.

 

Wed, 04/10/2013 - 14:45 | Link to Comment mdtrader
mdtrader's picture

I think we might have ripped threw most of the stops above 1576. First big earnings disappointment and the SPX will probably be minus 30 points.

Wed, 04/10/2013 - 14:44 | Link to Comment thismarketisrigged
thismarketisrigged's picture

ok, so what happens at 3:30 today?

 

lets here predictions dump or ramp?

 

i feel a major ramp, maybe close this thing at 14,900 so 15000 is easily achieveable by friday.However i dont think we get 15000 tomm,i think it happens friday so people can digest 15000 over the weekend.

 

either way i will laugh, and pray at the same time for these criminals to suffer for these crimes they are comitting

 

 

Wed, 04/10/2013 - 15:01 | Link to Comment Awakened Sheeple
Awakened Sheeple's picture

I'm gonna go out on a limb and say dump. All the indicators are overbought. The algos still trade on technicals.

Wed, 04/10/2013 - 14:52 | Link to Comment IamtheREALmario
IamtheREALmario's picture

To state the irrelevant obvious: "there would be no reason for shorts to capitulate if the exchanges were free markets". It is only because the so called markets guarantee liquidity that the MMs and Specs get a share supply imbalance becoming oversold or overbought and must move price against the free market.... and squeeze those that are inline with fundamentals and market forces.

It is a crap system.

Wed, 04/10/2013 - 15:29 | Link to Comment WTF_247
WTF_247's picture

Not even close on the shorts.  Once they leave valuation and fundamentals aside there is no limit on what the market will do.  Could be 1700 by the end of April.

There has yet to be one piece of news since the beginning of the year that can get stocks to pause the assent for more than 1 day.  Any and all back-offs are bought -  Ramps on low volume but there is no one selling into them.  I would think the short funds should be close to going all in.  If you hedge from here perhaps your downside is 5%, upside 15-20% imo.  Usually corrections happen when shorts start to put a cap on the market and longs get nervous.  So far none of that has happened.

 

Besides - its time for the 330 ramp into the close - starting a few min early I see.

Wed, 04/10/2013 - 16:34 | Link to Comment Dollar Bill Hiccup
Dollar Bill Hiccup's picture

1 - 3 years ... more

1998 ? Into the blue empyrean ...

Tech Bubble = Virtual trumps real

Housing Bubble = Real(ty) trumps virtual (but supported by virtual (leverage) money

Central Bank Bubble = NOW. 

Energy, Materials, so passe. China is cooked.

Tech, the land of deflation.

Industrials, waffling.

What do Central Banks support? Government deficits. What do Governments support? (in West)

Consumers : Healthcare, Cons Discretionary, Staples ...Bread and Circus bubble.

Look at monthly sector charts. Lowest beta is outperforming. If you leverage lowest beta

because you are a machine and you are killing it. Valuations? Who cares?

 

Wed, 04/10/2013 - 17:00 | Link to Comment Hetty Green
Hetty Green's picture

There will be no interruption of our permanent prosperity - Irving Fisher, 1929

Wed, 04/10/2013 - 22:05 | Link to Comment luna_man
luna_man's picture

 

 

Their gonna need to squeeze this "short" holder dry!!...

 

Aint no where else to be for me..."capitulation" is for the BULL

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