NYSE Short Interest Plunges To Lowest In Three Years

Tyler Durden's picture

Yesterday we reported that following a painful end to 2016, one of the most popular market bears, Horseman Global, had no choice but to begin capitulation and covering shorts:

[D]espite what I think, we are beginning to close parts of our short book. We have largely exited airline related shorts. We have also closed staple shorts, as they were largely there to protect against a fall in yields, which they did to a degree. We have also closed many developed financial shorts to make some space for Chinese financial shorts. We have also reduced the bond position and moved much of in to German bunds. The majority of the bund position is in 5 year bunds, the buy case I made a few months ago.

It turns out, he is not alone. As our friends at GaveKal point out, of the end of December, short interest dropped to its lowest level since early 2014, even as stock market indices hovered at new highs, suggesting that a short squeeze into the close of 2016 indeed took place as many trading desks suggested, and may have been responsible for the push higher in equity market toward the end of 2016.

Similar declines in the level of short interest occurred in 2009, 2010, and 2012.

Source: Jennifer Thomson via Gavekal Capital blog

But perhaps the most shocking consensus collapse in short interest is in US financials...

 

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NugginFuts's picture

That's cause GS is going to the MOON, baby! Six new cabinet members say so.

Heads up, folks - the smart money is on Corruption at a massive scale.

hedgeless_horseman's picture

 

What keeps the con going?  Apart from greed?  Money printing.  

 

Please, understand that if the amount of money in a closed system doubles, the value of each monetary unit halves, and the price of everything, including stocks, increases 100%.

http://www.zerohedge.com/news/2017-01-13/what-can-we-learn-looking-carni...

jamesmmu's picture

Too good to be true. Look at Obama, he appointed more GS guys than Trump, look how GS doing, it was fine, but not great.

King Tut's picture
King Tut (not verified) NugginFuts Jan 16, 2017 4:32 PM

Smart money is buying Pb and Pb delivery systems

NugginFuts's picture

Smarter money has been buying that for years.... and training.

Golden Showers's picture

Wow. That arrow goes down. If I only knew what the fuck "short interest" was, I'd say it was Americans after they learned what teams were going to the Stuper Bowl.

Dude, isn't Pb the elemental shorthand for lead?

Wow. King Tut. You're ballin!

82, Bitchez!

scintillator9's picture

No, silly.

Pb stands for Plumbum.

Did one not stay awake in grade school chemistry?

DavidC's picture

Uh? Plumbum is lead...

DavidC

AliSONY's picture
AliSONY (not verified) Jan 16, 2017 4:49 PM

Wow more such insights 

 

Yet again and again these dogmatic analysts get it wrong.

 

Just ridiculous

 

Only one analyst group proves their calls by showing past time stamped charts and have been nailing equities gold and oil

 

 

https://www.facebook.com/166578775325/photos/a.10153488951800326.1073741...

Traderone's picture

ALISONY= Failed trader now Spammer. 

NugginFuts's picture

"I don't have to think any more, I just do whatever these former Goldman Sachs analysts tell me to do. It's a push button money maker! In fact, it's so good I can't post without mentioning them every single time. Just wait till you go to their site and input your email! You'll get ten spam emails per day until you, too, are a bona fide believer!"

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) NugginFuts Jan 16, 2017 5:39 PM

This mom’s basement dwelling, failed trader, now spammer, registered the following spam accounts to promote their scam. Please don't give him the satisfaction of seeing his site hit counter go up from ZH clicks. He's not very bright, but eventually he’ll go away if his spam scam doesn't bring income from ZH. The spam accounts are: AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE, FemDayTrader, Irvingm, jasony, John Beau, KC Spike, MadhyaBharatx, MexInvest, MikeM54, Mon T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,  RoBERTAZ, Sonya B59, Stan Your Man, StevieTexie, Van G, Virginia Wooolf, wisetrader224, and xantippa

Traderone's picture

I daytrade full-time and to help alleviate the inevitable doldrum hours I go looking for these scamming Pricks and Troll them, I love it.

LowerSlowerDelaware_LSD's picture
LowerSlowerDelaware_LSD (not verified) Traderone Jan 16, 2017 9:28 PM

Excellent work!

I'm not a trader but I check in on the articles a few times per day.  The check of all of their publicly used aliases (updated list below) takes about 5 minutes, if that, using three windows.  He is so stupid that he makes it fun :) He does keep changing his tactics but he still doesn't get it that ZHers are onto him.  One can only hope that he is smart enough to eventually give up and go away, stop wasting his time on ZH.

The latest list: AliSONY, Babs.St.Louis, Billy G, Chi Juan, Dr.Carl, ErikE, FemDayTrader, Irvingm, jasony, John Beau, KC Spike, MadhyaBharatx, MexInvest, MikeM54, Mon T, P Christmas Carole, Penny Trader, Pinky and the Brain, PUNE,  RoBERTAZ, Sonya B59, Stan Your Man, StevieTexie, Van G, Virginia Wooolf, wisetrader224, and xantippa

 

 

Bam_Man's picture

"The crowd is always right."

SmittyinLA's picture

America is a like a racing sailboat towing a Socialist barge for 30 years....and suddenly Trump shows up with an axe.....who's gonna short that?

Nunyadambizness's picture

So.....this must mean the market is nearing the cliff, right?  Hang on folks, it's going to be a fun ride....

TheVoicesInYourHead's picture

Very bearish. So bullish.

TheRideNeverEnds's picture

I remember last time short interest was this low. It was 2009 and guess what happened next? The market went straight up, never again coming close to those lows, more than tripling over the next few years.

This is still relatively near the bottom of a multi generational bull market. You cant see that yet but if you live another twenty years to see the DOW go over 200,000 you'd have wished you bought it at the low low price of 20k.

Tom Green Swedish's picture

no more short squeezes then