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Marketwide Short Squeeze 5th Day In A Row

Tyler Durden's picture




 

For the 5th day in a row, US equity markets have been ignoted higher at the open by a sudden and extreme short squeeze among the weakest balance sheet companies. "Most Shorted" stocks have surged 3% in the last 5 days (double the S&P) but have only just managed to get back to unchanged for 2014 (against a 7.7% gain in the S&P).

5 days in a row...

 

Dragging "most shorted" stocks back up to unchange year-to-date...

 

Charts: Bloomberg

 

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Thu, 07/24/2014 - 12:03 | 4998684 NOTaREALmerican
NOTaREALmerican's picture

As long as the shorts keep "investing" the game keeps going.

Thu, 07/24/2014 - 12:08 | 4998716 whatsinaname
whatsinaname's picture

I guess Hugh Hendry wasnt too late to the party after all ? Wonder how his funds are doing lately. And who is short if everybody else is long ?

Thu, 07/24/2014 - 12:04 | 4998688 jubber
jubber's picture

& Gold Silver & now Oil longs pulvarised

Thu, 07/24/2014 - 13:59 | 4999336 1stepcloser
1stepcloser's picture

its only a flesh wound....

Thu, 07/24/2014 - 12:06 | 4998702 Sudden Debt
Sudden Debt's picture

That's what's so great about this Casino!!!!

THERE'S NO LIMIT!!!

Thu, 07/24/2014 - 12:07 | 4998705 fonzannoon
fonzannoon's picture

I think they meant 5th year in a row.

Thu, 07/24/2014 - 12:15 | 4998745 Waterfallsparkles
Waterfallsparkles's picture

I think that is how they are trying to keep the Market up.  Only people that will buy at all time highs are shorts that have to cover their positions because of a Margin Call.

So, what happens when the shorts are gone or have covered?

Not sure how many people will short this market because of the constant short squeezes.

Thu, 07/24/2014 - 12:57 | 4998982 El Hosel
El Hosel's picture

HLF, IP, RKT, PBYI.... "Rhino horn" up the wazoo if you dare short US

Thu, 07/24/2014 - 12:16 | 4998756 nosoeawe
nosoeawe's picture

… Already long ago, from when we sold our vote to no man, the People have abdicated our duties; for the People who once
upon a time handed out military command, high civil office, legions — everything, now restrains itself and anxiously hopes
for just two things: bread and circuses. - juvenal satire

 

 

Thu, 07/24/2014 - 12:19 | 4998767 El Hosel
El Hosel's picture

Trash is king

Thu, 07/24/2014 - 12:19 | 4998769 pakled
pakled's picture

Dogs don't know it's not bacon!

Thu, 07/24/2014 - 12:31 | 4998822 Keltner Channel Surf
Keltner Channel Surf's picture

I wonder if the issue isn't so much that these MS stocks are specifically being targeted at the open, but that general market-wide buying programs kick in, and these names have more closing buy stop orders just above the market.  Doesn't contradict Tyler's posts, but perhaps this is more an effect than a cause (?)

Thu, 07/24/2014 - 12:36 | 4998859 Squid Viscous
Squid Viscous's picture

Tyler can we get a list of "most shorted" next time? want to see this crap going on at a granular level...

Thu, 07/24/2014 - 12:37 | 4998865 TabakLover
TabakLover's picture

Got a feeling it turns around this afternoon.  Hope so, i'm holding puts bought at 1984.

Thu, 07/24/2014 - 12:54 | 4998970 whatsinaname
whatsinaname's picture

Hahaha... I have been getting that feeling for the last 5 years buddy.

I dont see a turnaround for miles ahead. I missed the turn a long time ago...

Thu, 07/24/2014 - 13:24 | 4999074 Keltner Channel Surf
Keltner Channel Surf's picture

You may still laugh last, Mr. 'ha-ha', but small caps just started to tank, and I profited from a Russell short, and currently hold another.  The gentleman may be correct, though longer term technicals are still a bit noncommittal.  VIX is backing up smartly. so we'll see if this is just a lunchtime fake-out or something substantial.

Thu, 07/24/2014 - 12:42 | 4998885 bescobar
bescobar's picture

The best way to describe the stock market-

http://m.youtube.com/watch?v=YHv5jgXz9I8

Thu, 07/24/2014 - 12:45 | 4998905 Yen Cross
Yen Cross's picture

  Boy that 'KC Fed'. number sure caugh*caugh* beat... That must be where the IMF dildo factory is.

 

08:00   USD KC Fed Manufacturing 9.00 6.00 6.00
Thu, 07/24/2014 - 12:50 | 4998936 buster
buster's picture

from Pseudodictionary.com:

ignote - (v) ehg-note. To make dumber by saying or doing something.

e.g., "Bob's okay, but his inane comments continue to ignote me." "I was completely ignoted by that movie."

 

ignote - It pretty much means "deny" or "refuse." "Ignoted" would mean denied or not accepted. Anything along those lines.

e.g., She ignoted Chris when he asked her out. Good for her.

Thu, 07/24/2014 - 12:51 | 4998937 Kirk2NCC1701
Kirk2NCC1701's picture

Reading this kind of Manipulation and drinking coffee gives me a "short squeeze".

Thu, 07/24/2014 - 12:58 | 4998992 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

There are people still shorting this market because they've got nothing else to do. They've already exited their long positions, waiting for a correction that never happened. They sure as shit aren't suddenly going to go long at the all time high (hmmm....let me buy some APPL and FB). What else to do except sit on cash? Patience is a virtue....

Thu, 07/24/2014 - 13:04 | 4999028 orangegeek
orangegeek's picture

big pomo ended today at 1100a

 

just a smattering of pomo to the end of july (10B cut - down to 25B - for Aug)

 

negative gdp for q2 out on july 30

 

hang onto your shorts

Thu, 07/24/2014 - 13:08 | 4999054 ThisIsBob
ThisIsBob's picture

How do you know it is short covering - where do you access that data?

I only ask, because anybody short in here needs to go back to chart school.

Thu, 07/24/2014 - 13:20 | 4999123 John Law Lives
John Law Lives's picture

Alan Greenspan was part of a recent interview with MarketWatch.  The topic of asset bubbles was raised.

http://www.marketwatch.com/story/greenspan-worries-about-false-dawns-fed...

excerpt of significance:

MarketWatch: Some economists argue that the economy has just been bubble after bubble and that we’re doomed to repeat this cycle. 

Greenspan: Well, I agree with that. I have come to the conclusion that bubbles, as I noted, are a function of human nature. We don’t have enough observations, but my tentative hypothesis to what we’re dealing with is that both a necessary and sufficient condition for the emergence of a bubble is a protracted period of stable economic activity at low inflation. So it is a very difficult policy problem. I do believe that central banks that believe they can quell bubbles are living in a state of unrealism.

 

Interesting how candid he seems to be here.  Maybe he feels being candid might allow him some modicum of absolution for the mess he helped create.

Thu, 07/24/2014 - 13:31 | 4999192 juggalo1
juggalo1's picture

When will they come up with an ETF that tracks the companies with largest short interest / most days to cover?

Thu, 07/24/2014 - 13:56 | 4999327 yogibear
yogibear's picture

I'm sure they trade on that infor. Why would they let others make money off that?

 

Thu, 07/24/2014 - 14:37 | 4999579 crakinshot
crakinshot's picture

Seems to me the guys loaning stock out and buying it all up when the shorters sell it.

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