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NYSE Short Interest Surges To Record, Pre-Lehman Level

Tyler Durden's picture




 

There are two ways of looking at the NYSE short interest, which as of September 15 surged by 1.4 billion to 18.4 billion shares or just shy of the level hit on July 31, 2008:

  • Either a central bank intervenes, or a massive forced buy-in event occurs, and unleashes the mother of all short squeezes, sending the S&P500 to new all time highs, or
  • Just as the record short interest in July 2008 correctly predicted the biggest financial crisis in history and all those shorts covered at a huge profit, so another historic market collapse is just around the corner.

The correct answer will be revealed in the coming weeks or months.

Source: NYSE

 

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Tue, 10/06/2015 - 19:33 | 6637719 Ban KKiller
Ban KKiller's picture

Shorting relies on some rational examination of the stock/company. Logic is dead on Wall Street. 

I predict the short squeeze to the moon! 

Tue, 10/06/2015 - 19:44 | 6637762 LetThemEatRand
LetThemEatRand's picture

" I predict the short squeeze to the moon!"

Agreed.  The stock market is all the Fed has left to maintain any sense of credibility among the typical middle- and upper-middle class sheep.  If there is a major crash and another bailout, even the average Joe Sixpack may start picking up pitch forks.

Tue, 10/06/2015 - 19:50 | 6637785 abyssinian
abyssinian's picture

Averge Joe can't afford a pitch fork right now. Feds can buy time with their scam polices, but creating too many malinvestoments which could crack any movement.  The lipsticks can stay on the pig for so long, eventually when it rains, they left with just a pig without lipstick! 

Tue, 10/06/2015 - 19:57 | 6637807 max2205
max2205's picture

It always comes down to a 50 50 bet, up or down.

Tue, 10/06/2015 - 20:33 | 6637951 Paveway IV
Paveway IV's picture

You're betting against the house. Sometimes, the house changes the rules. Rember when the SEC banned short selling of financial stocks in 2008 and 2011?

It's a 50/50 bet up or down just as long as the banks, SEC and the Fed decide that that's what the odds should be for the little people. When they decide otherwise, you can be sure it won't be in your favor, it will be in their or their cronies favor. You and I aren't in that club. 

Tue, 10/06/2015 - 22:29 | 6638337 espirit
espirit's picture

'THEY' need out of the Public/.Gov underfunded pension dilemma.

No Moar 7.75 to 8.00% contractual returns.

There is no other option but to take the markets down.

Tue, 10/06/2015 - 21:06 | 6638080 Lets Buy The Dip
Lets Buy The Dip's picture

this guy is rediculosuly accurate with his market calls, and said to watch the high yeild charts at the moment => http://www.bit.ly/1jLMmPk

What we do have to remember is that every time these charts get posted on zerohedge, as in the SHORT INTEREST ones, we rally really hard two weeks later. 

Janet yellen, is smelling and reaking of 3 day old booze people. So the games will continue. When QE4 and QE5 comes, then what will people say?? That will be funny. 

Wed, 10/07/2015 - 07:07 | 6638821 Lets_Eat_Ben
Lets_Eat_Ben's picture

"When QE4 and QE5 comes, then what will people say??"    Yep

 


 

 

Tue, 10/06/2015 - 19:50 | 6637787 SoilMyselfRotten
SoilMyselfRotten's picture

Looks like that chart could get peakier

Wed, 10/07/2015 - 03:06 | 6638655 Not Goldman Sachs
Not Goldman Sachs's picture

Yes, peakier, and about 2more years of short building.

Tue, 10/06/2015 - 19:50 | 6637783 Pareto
Pareto's picture

Though I am short, I think you're probably right.  I remember when it took a lot more than PPT on some days to rout out the shorts.  Back in the early 2000's short squeezes were quickly snuffed by a surge in still more selling.  How strong are longs at 20 times earnings in a stagnating economy?  But you're right, it seems that as soon as there is a strong buy, the shorts (instead of adding to their positions like they used to), on the first site of a reversal - even with pissy volume, cover immediately almost ensuring weak longs stay long.  I don't know.  Its what it feels like to me.  I just remember that back in those days, it was hard to get the market to come to the ask.  Shit, now it runs right through your ask you thought you'd never get.

Tue, 10/06/2015 - 20:13 | 6637878 Brooks_Orpington
Brooks_Orpington's picture

While I remain beta neutral, (not wanting to sell for capital gains reasons) I've been putting in bids for some biotechs and energy stocks at stupid levels I never expected to be hit.  In the past few days, a couple of them actually got hit.  CNX is a good example.  Details aside, this is a market you short at your own peril.

Wed, 10/07/2015 - 06:57 | 6638805 antonina2
antonina2's picture

I think we can blame the buy the dip QE attitude for that.  Sooner or later that strategy will stop working, but habits die hard, esp when they are making people lots of money!

Wed, 10/07/2015 - 02:17 | 6638632 SmokinMonkey
SmokinMonkey's picture

The TPP is what they are using to usher in a new currency for the "trading block" that will all go digital and ban cash.  I'm surprised ZH isn't talking more about that.  

Tue, 10/06/2015 - 19:46 | 6637720 El Viejo
El Viejo's picture

May I have some moar sir?

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

 

Tue, 10/06/2015 - 19:36 | 6637723 abyssinian
abyssinian's picture

The real market forces will prevail!  S&P will drop 50% + from there. 

Tue, 10/06/2015 - 19:48 | 6637770 El Viejo
El Viejo's picture

They'll say Yellen failed to act quickly enough,  but really how could she have known?

Tue, 10/06/2015 - 19:59 | 6637813 BandGap
BandGap's picture

The pundits/geniuses have been covering their asses lately. Look at the Bernanke.

Thin ice now.

Tue, 10/06/2015 - 20:08 | 6637829 El Viejo
El Viejo's picture

Yellen the fall guy??

We've been screaming for an honest market.  Maybe it's time someone did nothing.

What was that old Blue Grass / Country tune?  I heard the crash on the highway, but I didn't hear nobody pray.

Tue, 10/06/2015 - 20:15 | 6637886 BandGap
BandGap's picture

Fall guy? That used to mean something completely different. I think she has been granted wishes by TPTB if she eats all this. Same with Barry Soetoro. I think the US government has known this would happen for decades and has fabricated the important parts so that it will appear as if America "just fell apart". Better yet, they weren't responsible for the inevitable war.

I would play a shitload of golf too, if I knew my days were numbered. Just sayin'. We all go sometime, why not maximize the payout?

Tue, 10/06/2015 - 20:42 | 6638005 donkeyhaute
donkeyhaute's picture

agree.

except - not the 'US government.'  rather the inbred, psychopathic families that own the central banks and *occupy* the US government with agents and controlled stooges.  they have used their invented currency to acquire and control any asset that matters, including people.  this has been a very long time coming.  trillionaires don't have 5 year plans. 

this is why i am skeptical regarding BRICS and the glittering AIIB, SWIFT alternative, Chinese gold hoard etc....
TBTB have no intention of becoming The Powers That Were and despite tales of elite Chinese families going to bat against the western CB owners - i gotta believe they are all operating from the same playbook.

unfortunately, i believe this road ends with the people BEGGING for whatever replacement system they offer.

what happens in between now and then? use your imagination.  i am certain they have many multiple scenarios on deck and ready to deploy. 

Tue, 10/06/2015 - 22:33 | 6638343 espirit
espirit's picture

Golf is on the bucket list?

Shoot me in the head right now if it were so.

Tue, 10/06/2015 - 19:43 | 6637759 BlueStreet
BlueStreet's picture

Latter (please)

Tue, 10/06/2015 - 19:53 | 6637794 NoWayJose
NoWayJose's picture

The last couple of days has been a short squeeze!

Tue, 10/06/2015 - 19:56 | 6637797 Yen Cross
Yen Cross's picture

 Oooops, :'-(

 Shed a little tear for me.

Tue, 10/06/2015 - 19:55 | 6637798 Jack Burton
Jack Burton's picture

Off Topic. For five nights running Muslim Migrants has been rioting in Stockholm Sweden, burning cars, a school, and a police station. The riots have now spread to Göteborg and Malmö. Islamists have begun burning cars in all three cities, while 10,000 muslims a week continue to arrive in Sweden demanding apartments, free health care and free money. No, this is not a joke, and the migrants have been moved to the top government priority for spending, getting new flats and houses ready fro migrants in government's main goal facing winter. Migrationsverket says over 10,000 new migrants arrive eachw eek and reginster for regugee status, which entitles them to cash payments, a free apratment, a health number allowing free medical car for life, migrants are given transport cards good on buses, trains, subway and other public transport. Migrants are allowed to move freely to any city they like and travel for free. Upon arrival the local government must feed, house and pay them cash.

This is not a joke, this is happening right now!

Tue, 10/06/2015 - 19:58 | 6637809 OC Sure
OC Sure's picture

I believe you.

Tue, 10/06/2015 - 20:11 | 6637865 El Viejo
El Viejo's picture

I hear the Saudis have one million empty air conditioned tents near Mecca.

Tue, 10/06/2015 - 20:14 | 6637882 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

Hajj accommodations.

Tue, 10/06/2015 - 20:35 | 6637972 El Viejo
El Viejo's picture

Maybe its time they made a pilgrimage.  I'm sure their fellow muslim brothers will welcome them with open arms. 

Tue, 10/06/2015 - 22:40 | 6638355 espirit
espirit's picture

I'm aligning with the Korean community here.

(they shoot first and don't ask questions)

Tue, 10/06/2015 - 20:00 | 6637815 max2205
max2205's picture

Where do I sign up 

Tue, 10/06/2015 - 20:01 | 6637820 BandGap
BandGap's picture

Guess they are trying to ignite something. Wonder what?

Tue, 10/06/2015 - 20:01 | 6637821 BandGap
BandGap's picture

Guess they are trying to ignite something. Wonder what?

Tue, 10/06/2015 - 20:04 | 6637832 besnook
besnook's picture

how did the zionists get jews to move to israel? they made it miserable for them to stay in europe. how do you get a gdp boost from an increase in population? you make it miserable for immigrants to live in their home country.

how do these tens of thousands of refugees make it all the way to sweden without open borders and financial help? the only answer that fits is that it is part of the plan.

Tue, 10/06/2015 - 20:04 | 6637833 pelican
pelican's picture

The vikings better find their balls soon.

Tue, 10/06/2015 - 20:13 | 6637875 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

 

 

NIMBY-----for now.  If this becomes IMBY, this is the wrong neck of the woods to be fuckin' about.

Some folks will be able to get acquainted with their celestial virgins lickety-split.

Tue, 10/06/2015 - 20:29 | 6637941 Gambit
Gambit's picture

Although I do not doubt that it is happening, some links would be great. 

Tue, 10/06/2015 - 21:24 | 6638164 RadioFlyer
RadioFlyer's picture

Links? Can't find any riots since 2013

Tue, 10/06/2015 - 22:17 | 6638308 Nobodys Safe
Nobodys Safe's picture

Your link is from 2013, The comments are two years old. How can it be happening right now if the comments from the story are two years old? A simple google search will confirm that.

 

Tue, 10/06/2015 - 22:54 | 6638192 SSRI Junkie
SSRI Junkie's picture

wait till the swede gubmint starts throwing swedes out of their homes to make room for the preferred migrant class

 

http://www.dailymail.co.uk/news/article-3256156/German-woman-second-evic...

http://www.telegraph.co.uk/news/worldnews/europe/germany/11902296/Second...

Tue, 10/06/2015 - 22:21 | 6638320 Nobodys Safe
Nobodys Safe's picture

Jack, a real let down with your bogus off topic story. The link you provided is two years old May 2013.

Tue, 10/06/2015 - 20:00 | 6637799 lester1
lester1's picture

The Fed's plunge protection team will crush the short sellers. What's to stop the Fed from printing a few billion dollars and handing it to their "primary dealers" to buy stocks with?

 

When you are unaudited and have a money making machine there is a lot of manipulating you can do.

 

Audit the Fed !!!!

Tue, 10/06/2015 - 20:41 | 6637997 Fred Hayek
Fred Hayek's picture

It all depends on who's doing the shorting.
If this is Goldman Sachs and JP Morgan getting in front of an inevitable crash in a risibly overvalued stock market then the Fed, being literally owned by those same outfits, isn't going to stop anything.

Wed, 10/07/2015 - 01:04 | 6638566 Cosmicserpent
Cosmicserpent's picture

^^^^^^^^^^^^^^^^^^^^^^

THIS!

Goldman deliberately took down Lehman in 2008. It made Hank Poulson and Blankfein billionaires. It was a deliberate assasination and they targeted our tax dollars.

Worked before and they WILL do it again.

Tue, 10/06/2015 - 20:44 | 6637801 OC Sure
OC Sure's picture

 

 

(...psssst, rates were rising aggressively from 2004 to 2006)

Tue, 10/06/2015 - 19:56 | 6637802 g3h
g3h's picture

Mother of all sqeezes coming?

Tue, 10/06/2015 - 20:05 | 6637836 OC Sure
OC Sure's picture

Perhaps. You will be informed subsequently.

Tue, 10/06/2015 - 20:01 | 6637823 donkeyhaute
donkeyhaute's picture

unleash the muppet slayer!!

could be DOW 5k next week or DOW 20k.  wouldn't be surprised either way.

waiting for this thing to begin is becoming tedious. like waiting for Crispin Glover to lose his arm.
THIS IS IT!! ..... oh no.. BOJ saved the day. nothing happened.

Tue, 10/06/2015 - 21:43 | 6638226 Fahque Imuhnutjahb
Fahque Imuhnutjahb's picture

let the snow plow roll

Tue, 10/06/2015 - 20:06 | 6637842 besnook
besnook's picture

does the fed or proxies own most of those puts so they can have their way with the market? with a super short squeeze?

Tue, 10/06/2015 - 20:09 | 6637856 Yen Cross
Yen Cross's picture

Iron Ore prices are higher so the Ponzi must continue.

 * Waiting for the Gartman/ Stolper Jr. PUT. Ha/

 Just kidding, Until every assclown algo in the galaxy has read the Fed Minutes Thursday, the "rampathon shall continue". [albeit, at a slower pace.]

 So anyways I'm looking at CHIBOR, and getting nothing and liking it.

Tue, 10/06/2015 - 20:10 | 6637862 surf0766
surf0766's picture

Dow 30K dollar 0 Fed has no cred. Netiher does Mark Mywords

Tue, 10/06/2015 - 20:13 | 6637869 Nobodys Safe
Nobodys Safe's picture

All on Red?

All on Black?

Tue, 10/06/2015 - 20:24 | 6637921 OC Sure
OC Sure's picture

"Red - the blood of angry men!

Black - the dark of ages past!

Red - a world about to dawn!

Black - the night that ends at last!"

 -Kretzmer

 

...derrr, how about Gold?

Tue, 10/06/2015 - 20:18 | 6637901 ebworthen
ebworthen's picture

"30-1 on double sixes!  C'mon baby!"

It will happen sooner or later, but a little FEDspeak or QE4 could seriously burn a lot of betters.

Tue, 10/06/2015 - 20:22 | 6637919 Crocodile
Crocodile's picture

I'm betting the massive short squeeze, then the vanishing act.

Tue, 10/06/2015 - 20:24 | 6637926 bigbucksr
bigbucksr's picture

Hurricane Joaquin was supposed to be the hurricane that hit the East Coast of the US but apparently the US DOD lost control of it before it spun off to the Atlantic Ocean. 

Tue, 10/06/2015 - 21:26 | 6638172 RadioFlyer
RadioFlyer's picture

Just like the flap of butterfly wings can affect the weather in Tokyo, the Yellen farts last speech interrupted and redirected the hurricane.

Tue, 10/06/2015 - 20:41 | 6637996 buzzsaw99
buzzsaw99's picture

most of those shorts are probably over levered (and nervous) longs. there are no bulls or bears, there is only old yeller.

Tue, 10/06/2015 - 20:45 | 6638022 OC Sure
OC Sure's picture

gold cld b yello

Tue, 10/06/2015 - 20:53 | 6638052 Grandad Grumps
Grandad Grumps's picture

How can anyone short a market that is 100% controlled by the banks?

Tue, 10/06/2015 - 21:17 | 6638130 Redart
Redart's picture

The curve is not so steep as 2008. More balanced this time. Looks more a short squeez coming. Buy biotech index call options and let them go sky high

Tue, 10/06/2015 - 21:17 | 6638135 HoserF16
HoserF16's picture

Be afraid, Very, Very, AFRAID.

Tue, 10/06/2015 - 22:06 | 6638282 Chad_the_short_...
Chad_the_short_seller's picture

haven't we just seen a monster short squeeze?

Tue, 10/06/2015 - 22:47 | 6638372 magnetosphere
magnetosphere's picture

and what is the long open interest

Tue, 10/06/2015 - 23:17 | 6638428 christiangustafson
christiangustafson's picture

Week 5 October SPY 170 puts ... wait for it ... wait ... for it ...

Tue, 10/06/2015 - 23:41 | 6638468 buzzy_the_pirate_dog
buzzy_the_pirate_dog's picture

Bid .12 ask .14

Wed, 10/07/2015 - 00:51 | 6638552 christiangustafson
christiangustafson's picture

These or a nearby strike for eight cents would be nice.

Wed, 10/07/2015 - 05:18 | 6638713 Sudden Debt
Sudden Debt's picture

To the shorts: to squeeze the market, it doesn't matter how the market is doing.

They only have to delay the crash for 3 to 4 weeks and we'll get a new top on the squeeze.

Also, remember who's shorting and who's not!!!

 

Retail is shorting because of getting rich real fast. It never goes like this and the crowd will be wrong here.

Also, the economy might be not good but it's not as bad as 2007 and well, Pe's don't matter anymore.

And why do Pe's don't matter?

We're on the verge of a inflation boom, when it happens, all the shares will be dirt cheap and pe's will drop like a rock when prices go up.

Deflation isn't forever.

Wed, 10/07/2015 - 07:41 | 6638879 NaiLib
NaiLib's picture

"inflation boom"... that was interesting.  :)

Wed, 10/07/2015 - 06:43 | 6638789 Occams_Razor_Trader
Occams_Razor_Trader's picture

I agree with previous posts, the FED has too much invested to let this thing fail- in retrospect we'll find out some 'new' fangled Liquidity scheme is responsible for this move up from the bottom.

Wed, 10/07/2015 - 15:43 | 6641132 Jstanley011
Jstanley011's picture

Just like in 2000 and 2007, people will be calling bottoms all the way down past the Lucifer lows.

It's because denial is an important part of human nature. Without it, we human beings would be unable to muster the optimism to function at all in the face of our inevitable, meaningless and always-impending deaths, much less to build civilizations.

The price we pay for our denial is surprise. Surprised when the airbag smashes out our teeth. Surprised when the overlooked figure turns and stabs us with a knife. Surprised at the terminal cancer diagnosis. Surprised at being suddenly destititute.

Surprised, that is, by what have been the common, run-of the-mill human experiences from time immemorial. 

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