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WTForced Buy In: Shorts Crucified By Biggest Squeeze Since 2013

Tyler Durden's picture




 

Many market participants are looking dumbstruck at the miraculous surge in Dow Transports, Small Caps, and Homebuilders this week off the bond-short-puke lows of Wednesday morning. The answer - sadly for those who believe this is presaging new new highs and utopia once again - is that this was the biggest weekly short-squeeze in 11 months... and more troubling for the bulls - it ran out of steam today.

 

"Most Shorted" stocks (BBG Ticker GSCBMSAL Index) rose 3.3% on the week...

 

...with a 7.1% swing intra-week off the bond-short-puke lows...

 

This is the biggest squeeze in 11 months (after last week's biggest drop in 3 years)

 

But... a quick glance at the top chart shows the squeeze has run its course (and today's considerable weakness in Small Caps)...

 

*  *  *

Trade Accordingly

 

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Fri, 10/17/2014 - 16:24 | 5348598 NaiLib
NaiLib's picture

It was probably one of the biggest institutions with naked sold derivatives who had to "save" positions. Squeezed on two fronts, price _and_ volatility. Had to act.

Fri, 10/17/2014 - 16:49 | 5348687 idea_hamster
idea_hamster's picture

"BBG Ticker GSCBMSAL Index"

See -- this is why I love you guys!

Fri, 10/17/2014 - 17:03 | 5348730 0b1knob
0b1knob's picture

< Better the shorts get crucified than the muppets.

"There must be some kind of way out of here, "Said the joker to the thief,"There's too much confusion, I can't get no relief.

 

Shorts, muppets, jokers, thieves, fools.  There's a cross with our name on it in some FEMA camp somewhere.

Fri, 10/17/2014 - 18:50 | 5348985 DaddyO
DaddyO's picture

Speaking of Shorts, muppets, jokers, thieves, fools.

http://rt.com/shows/boom-bust/196708-europe-argentina-investment-economy...

DaddyO

Fri, 10/17/2014 - 16:39 | 5348656 remain calm
remain calm's picture

I will reshort this market after apples numbesr which I suspect will be good given it is hard to still get an I phone 6. Then the markst goes KABOOM!!Be patient on the short side and turn off BUBBLEVISION, IT ONLY CLOUDS CLEAR THOUGHT.

Fri, 10/17/2014 - 16:24 | 5348601 VATICANT
VATICANT's picture

This is playing out perfect for an end of the month crash. Hello '29

Fri, 10/17/2014 - 16:59 | 5348713 jvetter713
jvetter713's picture

Sure hope so.

Fri, 10/17/2014 - 18:21 | 5348920 Salah
Salah's picture

Could be...Jupiter is out of America's 8th House of easy money & speculative excess, won't return for 12 more years.

Fri, 10/17/2014 - 16:27 | 5348607 gswifty
gswifty's picture

So we're looking at another black monday? Goody.

Fri, 10/17/2014 - 22:36 | 5349583 InjectTheVenom
InjectTheVenom's picture

racist        ;>)

Fri, 10/17/2014 - 16:31 | 5348615 MsCreant
MsCreant's picture

Is it possible to be so heavy on the shorts that you could break the system? I am not a trader, but your squeeze on the shorts, it would seem to me, would only be as good as the solvency of your counter party. Too much margin = debt that cannot be covered. This could break everyone down as everyone has to sell and cover their uncovered bets that the shorts could not pay out on. I guess that is how the shorts would eventually recover, the deflation. But it just seems going too short could break things before they could balance the books again.

Fri, 10/17/2014 - 16:33 | 5348642 ebworthen
ebworthen's picture

Monday might just be another "big red" as margin calls come in.

When the Trillions in derivatives unwind it will happen fast.

Fri, 10/17/2014 - 17:34 | 5348819 El Oregonian
El Oregonian's picture

.9999 Silver wire. Cover both ends (i.e. Precious Metals/Colloidal Silver wire as part of the ebola antibacterial cure.

Simple. Win-Win.

Fri, 10/17/2014 - 22:25 | 5349553 Newsboy
Newsboy's picture

Medical grade silver to produce colloidal silver.

Avoid heavy metal contaminants in your body.

Fri, 10/17/2014 - 23:19 | 5349664 Newsboy
Newsboy's picture

The concentrations of nano silver of interest in the government research are 10-50 micrograms per milliliter, or 10-50 micrograms per gram.

That's 10-50 grams of finest colloidal silver per 100 kg human body (220#).

Colloidal silver seems to be sold in concentrations which are about like the concentrations in the experiment itself.

It looks like consuming your body weight of colloidal silver liquid might get you into the ballpark.

You would look so Smurf, so long before you ever accumulated that amount.

That's probably why the effect was not studied further.

 

Fri, 10/17/2014 - 17:07 | 5348740 negative rates
negative rates's picture

You sound like a drug dealer trying to keep the money straight.

Fri, 10/17/2014 - 16:30 | 5348620 debtor of last ...
debtor of last resort's picture

When gold, silver and most shorted shit the same bed, it's time to look at some physical generational assets. Like aspirine.

Fri, 10/17/2014 - 16:32 | 5348636 ShrNfr
ShrNfr's picture

Get Shorty.

Fri, 10/17/2014 - 16:35 | 5348646 Duc888
Duc888's picture

 

 

Fuck yea.  Roll with it.

 

Remember, government never lies and nothing is rigged.

 

Fri, 10/17/2014 - 16:35 | 5348648 WTFRLY
WTFRLY's picture

Cruise ship with quarantined Ebola couple returning to Texas after Mexico does not give 'clearance'

http://wtfrly.com/2014/10/17/cruise-ship-quarantined-ebola-couple-return...

Fri, 10/17/2014 - 16:41 | 5348665 MsCreant
MsCreant's picture

Have you ever heard of the story of "The Ship of Fools?"

From Wiki:

The allegory depicts a vessel populated by human inhabitants who are deranged, frivolous, or oblivious passengers aboard a ship without a pilot, and seemingly ignorant of their own direction.

Fri, 10/17/2014 - 16:48 | 5348683 Ness.
Ness.'s picture

Good song too.  World Party.

 

https://www.youtube.com/watch?v=ZHh0V7UjVXI

 

 

Fri, 10/17/2014 - 20:44 | 5349285 pipes
Fri, 10/17/2014 - 16:53 | 5348694 RaceToTheBottom
RaceToTheBottom's picture

Sounds great, where do I sign up?

Fri, 10/17/2014 - 17:25 | 5348793 Ariadne
Fri, 10/17/2014 - 19:02 | 5349022 Bananamerican
Fri, 10/17/2014 - 16:48 | 5348684 walküre
walküre's picture

So the hospital worker who had contact with the first ever Ebola patient in the US, decides to take a cruise shortly after?

All shits and no giggles?

Fri, 10/17/2014 - 17:08 | 5348753 negative rates
negative rates's picture

Well if the boss made you work with faulty equipment, then why not spread the love around?

Fri, 10/17/2014 - 17:38 | 5348825 walküre
walküre's picture

approx. 2500 other cruise guests and staff would disagree

they're still on a ship, in one cabin, surrounded by 2500 would-be Ebola zombies

will Texas allow the ship to come back? will they be allowed to disembark right away or will they quarantine the ship?

not to mention the costs of cleaning and disinfecting the entire ship and who would want to do that job?

America is NOT prepared for Ebola. People here have way too many freedoms and way too much money. The niggas in the shitholes of West Africa have nothing to gain, nothing to lose. They don't have cars or fancy homes or any vacation plans.

 

Fri, 10/17/2014 - 16:37 | 5348651 WTFRLY
WTFRLY's picture

Wait for a young caucasian school child to get an Ebola scare.

Fri, 10/17/2014 - 16:37 | 5348655 slaughterer
slaughterer's picture

This week was fun, but next week is a different game.  

Fri, 10/17/2014 - 16:44 | 5348675 Pareto
Pareto's picture

Sell ANY rally.  200 day is, in my opinion, heady resistance - FOR EVERYTHING.

HAGW ZH!!

Fri, 10/17/2014 - 16:59 | 5348714 prefan4200
prefan4200's picture

Crucifixion?  Line on the left, one cross each.

Fri, 10/17/2014 - 17:09 | 5348757 spinone
spinone's picture

Suckers.  This market is so easy to trade.  Just BTFD.

Fri, 10/17/2014 - 17:45 | 5348839 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

lol putz

Fri, 10/17/2014 - 17:53 | 5348854 vote_libertaria...
vote_libertarian_party's picture

consumer disc (XRT) was weak today too.

 

???

Fri, 10/17/2014 - 17:54 | 5348858 limacon
limacon's picture

If only they took as good care of the passengers as for the aircraft .

See after a mercury spill : http://avstop.com/maint/corrosion/ch7.html

Fri, 10/17/2014 - 18:14 | 5348905 sof_hannibal
sof_hannibal's picture

QE bear trap

Fri, 10/17/2014 - 18:22 | 5348923 Spungo
Spungo's picture

You can't say black monday. It's racist.

Fri, 10/17/2014 - 19:29 | 5349092 cnmcdee
cnmcdee's picture

They keep doing it over and over and over again.  Corraling everybody and just when everybody goes short they hammer the positions so the market rallies.

I'm curious what they will do when they don't have anyone left to burn...

Fri, 10/17/2014 - 21:53 | 5349462 Downtoolong
Downtoolong's picture

Watching the Fed repeatedly run over people, who for some unknown reason still believe the market is operating on fair terms, is kind of like watching a pro baseball team take on your local little league.

The sad fact is the Fed actually considers it winning, and they are proud of it too.   

Fri, 10/17/2014 - 22:20 | 5349542 Kina
Kina's picture

Shorts 

 

When you pull down your shorts ...bend over a barrel....and say rape me again bitch.  Never learn...deserve what they get.

Fri, 10/17/2014 - 23:02 | 5349624 Pumpkin
Pumpkin's picture

If I had 4 or 5 trillions dollars and you were in the stock market, I could take your money too.

Sat, 10/18/2014 - 09:18 | 5350068 Ghostdog
Ghostdog's picture

Were they crucifued or did they just cover... for now...

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