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The Squeeze Continues... "Most Shorted" Stocks Are Screaming Higher

Tyler Durden's picture




 

Yesterday we noted the dramatic squeeze of the "most shorted" stocks as they outperformed the broad market five-fold. The rout continues to gather pace as this morning sees the "most shorted" index soaring back near last week's highs and up almost 8% from Wednesday's lows.

 

"most shorted" stocks are ripping higher off last week's lows...

 

But this week has seen the real pressure applied...

 

Charts: Bloomberg

 

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Tue, 04/22/2014 - 10:45 | 4682555 Carpenter1
Carpenter1's picture

Rigging that would make Vegas casinos blush

Tue, 04/22/2014 - 10:57 | 4682596 Oh regional Indian
Oh regional Indian's picture

Being in the market at this time is a cross between having your balls in a pneumatic vice and a sword hanging over your head.

How do you jump?

;-)

ori

http://aadivaahan.wordpress.com/2011/01/27/wisdom-for-warriors-6/

Tue, 04/22/2014 - 11:02 | 4682608 philipat
philipat's picture

Of corse, Gold, the most shorted of all asset classes, alone is NOT being bid. Wonder why?? Answers please on a postcard to Mr Yellin.

Tue, 04/22/2014 - 13:31 | 4683241 Redneck Hippy
Redneck Hippy's picture

"Most shorted" as in most shorted by hedge funds.  Schadenfreude is so sweet.

Tue, 04/22/2014 - 10:45 | 4682556 Carpenter1
Carpenter1's picture

Rigging that would make Vegas casinos blush

Tue, 04/22/2014 - 10:49 | 4682568 fonzannoon
fonzannoon's picture

Once the most sharted stocks start screaming higher we may finally see a change.

Tue, 04/22/2014 - 11:19 | 4682662 Oh regional Indian
Oh regional Indian's picture

The word sharted always makes me laugh.

First you shart, then you scream: "HIGHER!"

;-)

Tue, 04/22/2014 - 10:45 | 4682557 youngman
youngman's picture

to me it seems its the HFTs.....if you know the amount of shorts on a stock..and its high..just get the momentum going up and that is all you need to do to ride the wave.....

Tue, 04/22/2014 - 10:47 | 4682558 PlusTic
PlusTic's picture

it's beyond rigging when everyone knows it's rigging...it's become an outright fraud! 

Tue, 04/22/2014 - 10:48 | 4682562 NoDebt
NoDebt's picture

The Ark of the Cov-Light Loan has been opened and all the shorts sellers' faces melted off.

 

Tue, 04/22/2014 - 10:48 | 4682563 monopoly
monopoly's picture

Unless you are really really good or just lucky, shorting these broken markets is a death wish.

Tue, 04/22/2014 - 10:58 | 4682598 Sudden Debt
Sudden Debt's picture

well... it does feel like somebody pulled my spline from of my back...

 

Tue, 04/22/2014 - 11:11 | 4682617 Dr. Engali
Dr. Engali's picture

Why fucking short it when the fed has made it so easy? Take advantage of the free money then buy PMs with your profits. We all know where this thing is going eventually. Might as well make the best of it.

Tue, 04/22/2014 - 11:19 | 4682660 BeetleBailey
BeetleBailey's picture

True Doc...part of what I'm doing...taking profits and buying PM's...just bought MOAR silver coins today with some.......but also...

Nibbling on the shorts...a little here..a little there....building..not fucking timing...I don't know how the day traders can stomach this shite....

Lastly....FUCK YOU EVERYONE AT THE GOD DAMNED FEDERAL CRIMINAL RESERVE, YOU LYING PRICKS!

Tue, 04/22/2014 - 13:03 | 4683093 Mesquite
Mesquite's picture

>Dr.E

Egg-xactly...

Besides, I like this Maytag...

Works for me..

:-)

Tue, 04/22/2014 - 10:49 | 4682566 babylon15
babylon15's picture

hedge funds getting kicked in the balls again i presume

Tue, 04/22/2014 - 10:50 | 4682569 Squid Viscous
Squid Viscous's picture

Scotch - breakfast of champions

Tue, 04/22/2014 - 10:51 | 4682574 disabledvet
disabledvet's picture

there is no recovery from this failure when it comes as they always do as "freeze to death Nation" gets in full swing.

Gonna have snow tomorrow no less.
"Blizzard in May" even better.

Need to get those water levels up so we can drive all those nukers out of business.

Don't even get me started on wind turbines. Talk about a banner year.

Tue, 04/22/2014 - 10:51 | 4682577 fonzannoon
Tue, 04/22/2014 - 10:55 | 4682587 Caracalla
Caracalla's picture

But, but....inflation is really subdued according to the MSM!

Tue, 04/22/2014 - 10:59 | 4682603 NoDebt
NoDebt's picture

I've been watching that one since you pointed it out to me.  The one month chart is flat, but the damage has been done already with that 15% move.

Sorta related, but Oil got hammerd down a buck-fiddy today.  Could just be options expiration movement, but it's retraced all recent gains.  

 

Tue, 04/22/2014 - 11:10 | 4682629 NoDebt
NoDebt's picture

"Nobody wants us to be Cuba."  So, nothing to worry about.

Tue, 04/22/2014 - 11:00 | 4682582 Dr. Engali
Dr. Engali's picture

Old Yeller suckers them in every time. The DAX has had a good run, time to take a little currency off the table.

Tue, 04/22/2014 - 10:54 | 4682586 Sudden Debt
Sudden Debt's picture

Yep... use taxmoney to squeeze out Joe little average investors...

makes perfect sense...

man... these are billion dollar fixes for a few short moments so the banks can steal billions from the average investor and when those are squeezed out, they drop the market to kill the other side.

This market is so busted it's unbelievable... It's all just one rigged casino build so only the banks win.

Banks get 100% profitable trading days, retail gets zero profitable trading days.

It's a killing joke what we still dare to call free economy.

 

Tue, 04/22/2014 - 10:59 | 4682601 q99x2
q99x2's picture

FU Soros.

Tue, 04/22/2014 - 11:21 | 4682636 John Law Lives
John Law Lives's picture

Here is a little MSM wisdom...

Worried higher gas prices could ruin the rally? Here's why you shouldn't
By Maxwell Meyers 17 hours ago
Talking Numbers

http://finance.yahoo.com/blogs/talking-numbers/worried-higher-gas-prices...

key excerpt:

“Gasoline prices act as a tax on the consumer, so higher gas prices will eventually impact consumer demand, but that doesn't necessarily feed through to stock prices,” said Enis Taner of Riskreversal.com. Stock prices have risen in spite of a weak macroeconomic backdrop in the U.S. for years now. “If and when stocks do fall, it is not likely to be due to macroeconomic factors like gas prices.”

 

Great job, Fed.  You have fostered an environment where macroeconomic data is simply deemed irrelevant re. equity prices.

FedFUBAR.

Tue, 04/22/2014 - 13:35 | 4683265 Redneck Hippy
Redneck Hippy's picture

Of course macroeconomic data is irrelevant, because the macroeconomy is that of the masses, who are getting shafted each and every day.  The stock market is concerned only with the people who own stock, the 1% currently, but edging toward the 0.1%.  THEIR economy is  doing terrific and getting better each and every day.  So it is no surprise that the market goes up.

Tue, 04/22/2014 - 11:19 | 4682658 SillySalesmanQu...
SillySalesmanQuestion's picture

They are most shorted for a reason...fundamentals. But, those don't apply any more. Its feeding time at the zoo again...

Tue, 04/22/2014 - 11:22 | 4682676 kurzdump
kurzdump's picture

Markets are controlled by algorithms. Pointless to fight them - its like competing against a petaflop chess computer. Sure, you might take a pawn every now and then, after a while youll get smashed - no matter how smart your strategy might be.

Take the pawn and run.

Tue, 04/22/2014 - 11:40 | 4682738 SheepDog-One
SheepDog-One's picture

I think these 'shorts' are the Fed itself....why not it doesn't cost them a dime to take a bunch of shot posions and then squeeze themselves to make their bullshit indexes go higher.

Tue, 04/22/2014 - 12:27 | 4682938 TheRideNeverEnds
TheRideNeverEnds's picture

Look man, you had a chance to buy the dip before we pushed past 1900.  Now its time to panic buy the all time highs again.  

Tue, 04/22/2014 - 13:03 | 4683100 Squid Viscous
Squid Viscous's picture

fuck face you were super tard bullish at 1895, so still red by alot

Tue, 04/22/2014 - 13:41 | 4683305 Redneck Hippy
Redneck Hippy's picture

I bought the dip and I bought the all time high and I just keep buying.   I'm almost 300% high and about 30% short.  If I could get my broker to play along, I'd be 400% long and 40% short, or maybe 500 and 50.  

Yes the market is rigged.  So you don't want a part of that?

Tue, 04/22/2014 - 14:01 | 4683402 toros
toros's picture

The market cap of the S&P is up $580B in the last week.  +10B from the FED. +$22B from income after expences.  Where's the other +$548B coming from? 

Tue, 04/22/2014 - 14:05 | 4683427 Muppet
Muppet's picture

Of course its rigged.   Far too much of the newly printed money is in the market.   The Government can't let it evaporate via a market decline.  Quite the contrary, the new money is growing at near breakneck speed.   Don't tell anyone... this is the real agenda.

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