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Where The Shorts Are Hiding: S&P Short Interest By Sector
It will probably not come as a surprise that with oil trading at 6 year lows, and with China barely able to keep the plates spinning, according to the latest NYSE data, Energy and Industrial were the most shorted sectors as the shorts congregate, having smelled if not blood than ongoing commodity and excess capacity turmoil. What about the remaining 8 sectors?
Here, courtesy of JPM, is the full breakdown of the most, and least, shorted S&P500 sectors.
Another way of showing relative investor interest in various asset classes, if not sectors, comes from the following BofA chart showing that discertionary, banks, Eurozone and Japan are substantially overowned, while Energy, EM, Materials and Commodities are almost universally despised, as expected.
So for anyone betting that the shorting "smart alpha" may have overstayed its welcome and that a vicious squeeze is imminent, if only due to technicals, a contrarian bet would be to go long energy/materials, EM/commodities and staples, while shorting discretionary, bank, Europe and Japan.
In fact, as a BofA client survey shows, some of the firm's clients are starting to aggressively enter Energy, which on a sector basis, was the second most popular vertical, second only to financials.
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step up to the plate and get your shorts bloodied, the ppt is ready to take your order
where-shorts-are-hiding
on Walmarts shelves........................been a cool summer and another little reason
NO ONES GOT ANY FUCKING MONEY!
It may not be absolutely necessary that China be able to keep all the plates spinning, as long as they do it with STYLE!
https://youtu.be/rAJHlGm2cA4
Ha ha ha and a nice fancy gold threade costume balanced on 1 leg.
lol
I might sit this one out.
Might as well. We'll be green by lunch. All news is good news, so it's not just plates that are spinning.
Energy is old but financials I like. FAZ
Interesting day on Silver. Some bid ask imbalances today indicate that this down swing might be a huge fake move. Stay tunned on silver for the next dayz.
Down under 4 precent? Not exactly the Blue Plate special, now is it? Wake me if it slides under $14.
The charts lose all credibility when associated wiith JP Morgan and Dimon. They are the group doing the looting!!
If you really believe that we aren't going to need more energy in the future or that the majors aren't going to capitalize on this current environment, then by all means continue to short the energy market and allow me to take your fiat. For me, I'm putting money to work in the energy sector( as well as continued prchases of PMs). This may, or may not be the bottom, who knows? All I do know is, barring a major war, there aren't going to be fewer people on the planet, and if there is a major war then I'll be vaporized and won't give a shit if imy investment pays off.
seems wise to me, this shit can't go on forever
You should make a fiat windfall prior to being vaporized, considering commodities do well during major wars.
This should be of consolation as you shuffle off this mortal coil to merge with oblivion.
Add another billion or 2 people and we'll still use a lot less energy in the future if we're all rummaging through dumpters and bathing in rivers
+1 Doctor. That has been my thesis as well. The only other pitfall, I would point out is the arrival of benevolent aliens who teach us how to harvest energy from quantum vacuum and alchemy. Barring this, thesis is pretty sound.
-1) for this reason. the electronic technology revolution promised to decrease our overall need for electricity. as computers improve according to moores law, etc. what happened was the build out phase in which the new products arrived to replace the old ones (electric cars for gas guzzling cadillacs) overwhelmed the productivity gains. listen to the markets, the markets in energy are saying we are not going to need more electricity in the future. consider how much energy new light bulb technology is saving. even if you give every poor person in a 3rd world country a lamp and a bulb, its an LED. the real issue isnt energy its credit and money. the energy sector was the recipient of malinvestment, once that deal ends energy should be fairly priced. buy NG bitchez, its currently priced at 1/2 of crude in terms of BTU
The EM and energy are both one STD outside the overowned side of the curve. the EM is going to take a hit, is already doing so, if you consider China. and energy and the EM are pretty much synonomous. not sure i am on the energy bandwagon yet. China will try to escape this deflationary vortex by supplying the world with cheap solar panels, while energy costs go through the floor, it might not play too well in the consumer market, where the solar refi bubble is going crazy. when all this breaks up i can see these companies repossessing their solar panels as part of a bankruptcy settlement, and utility companies laughing all the way to the bank.
looks to me like the 'hedgies' are quite net long, with the except of energy and to lesser extend industrials.
so if energy simply stays low, they lose....and if rest of mkt goes down they lose. energy goes down further, bit of a win, but all the other longs will suffer worse with a slight general market decline. just buy a ton of nflx /s
long term , energy majors are great....but who does that?