"Throwing In The Towel" - US Stock Market Shorts Hit 10-Year Low

Tyler Durden's picture

It appears the bears have almost fully "thrown in the towel" as short interest in the US equity market's most liquid ETF has tumbled to its lowest since May 2007.

In fact, the last time shorts were this dis-spirited was just as the S&P 500 began its rounded top and freefall from a previously "permanently high plateau."

(we note that these numbers are for late-March and today we will see the mid-April levels for short interest)

Along with the collapse in VIX (as hedges are unwound), one might wonder where the ammunition for the next short-squeeze leg higher will come from?

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PrayingMantis's picture

Trump: "We’re going to win so much, you’re going to be so sick and tired of winning"

... feeling "sick" yet?

Looney's picture


Sick? Hell, yeah!

Lately, I’ve developed a very strong aversion to wearing flip-flops. I can’t even wear’em during sex. Dammit!   ;-)


Lonesome Crow's picture

Jesse Livermore identified it first and it has been the primary indicator ever since:


DavidC's picture

Why did I find that so funny!? I don't know, but I did! Dammit!


Croesus's picture


Need some opinions here, as to what you think is going on:

A close friend of mine was recently in a car accident.

The insurance co., sent him to their "preferred body shop". This guy, tells my friend "Right now, it's at $9500, and I'm not done writin' yet". - (the rear right qrtr panel's going to need replacing, along with airbags and a seat. The tire's bent inwards at a slight angle (hopefully just a strut), but the car is otherwise mechanically sound, and safe to drive. The computerized restraint system locked-up the belts, and there's some other things, too).

This morning, BodyShopGuy calls my buddy, leaves a VM saying "I want to confirm with you that they (ins) are going to total it, and pick it up today".

So my buddy and I head down there, and pick up the car...the ins. co did not want to let him take it (even tho the title hasn't been signed-over, and my buddy still makes the payments...).

We take it to a local body shop, who has done work for my family, and his estimate comes in at $6500...30% CHEAPER.

Now, the car books for $8000, and $10,800 is still owed on it. My friend didn't have Gap coverage, so he would owe the bank the difference if it was totalled (which is what we're trying to prevent).

The 1st estimate included a lot of extra charges for things that aren't even damaged (such as taillights).

The whole thing between the insurance company, and the preferred body shop smells. It "smelled funny" when I was there, as everybody seemed just a little too anxious to total my friend's car.

Since the 2nd estimate comes in cheaper than book value, the insurance company should hopefully pay to fix it, or am I wrong?

I'd love to hear anybody's thoughts on it.

daveO's picture

Maybe the insurance co. wants to total it so they can resell it at auction to save money?

Blue Balls's picture

It's a joo world after all.

Wrenching Away's picture

You are right about the preferred shop thing, it is usually mutually beneficial relationship between the body shop and the insurance company. You are completely within your right to use a shop of your choosing, however, you still have a problem. If the car books for $8000, and the estimate is $6500, you are still over the "total threshold". I don't know what state you are in, but almost everywhere the limit is 75% of the value of the car. You can easily google  the total loss formula (TLF) for your state and do the calculation, but I would say he is probably out of luck on this one.

Croesus's picture

Guys, thank you very much!

My friend's thought was that they would sell it at a salvage auction...

Re: the total threshold, if my buddy paid the difference, he'd still be able to do that more cheaply than he would, left as a bagholder to the bank.

flaunt's picture

Just tell me what Gartman is doing, please!

BlueHorseShoeLovesDT's picture

He thinks it is a Bull Market, he was just on CNBS Fucked Money

mily's picture

Bear market rolling in 3..2..1...

mily's picture

As ZH twitted, Dennis is long US steel, what a coincidence he mentioned this particular company out thousands day before earnings and X is down 17% afterhours after earnings report

ejmoosa's picture

Indeed, I confess, it has been brutal.

My friends, who know what I have thought of market valuations have been laughing.

That's ok.  I'll stay the course.  And I know who my true friends are now.

BandGap's picture

He who gives no mercy can expect none.

When the tables turn don't laugh.

Blankfuck's picture

lost dealy from the fed ponzi game


currentsea's picture

as soon as you give up on your short is when it crashes.  such is life.

Winston Churchill's picture

No shorts mean no buffers when it crashes.

S+P =666 is the resistance level.

Dilluminati's picture

Get diversified and set a percent limit on loss, grab the money when you get tired of winning

Trump: "We’re going to win so much, you’re going to be so sick and tired of winning"

Just make sure you have an exit plan in this market, best of luck

onthedeschutes's picture

Exit plan....hahahahah....good one.

Osmium's picture

Along with the collapse in VIX (as hedges are unwound), one might wonder where the ammunition for the next short-squeeze leg higher will come from?

ZH, Meet central banks.  They got all the liquidity they need to prop this up.


arby63's picture

The only thing stopping this market is a bloody world war. That may not even be enough. 

Boxed Merlot's picture

...That may not even be enough...

So, in addition to their current beef and pork numbers, what's the over / under on when FINVIZ's meat futures listing starts carrying chicken, goat or lamb in their listings?

Or will it need to be all three at the same moment in order to not "offend" any "investors"?

On second thought maybe it should also include fish and raccoon / squirrel.


Lama's picture

Tyler(s) spewing bearish cr*p since atleast 2008, I for one would like to see the Tyler(s) close shop and that would surely mark the market peak!

luna_man's picture

Hold on there...This "bear" is still "short" and I see no reason to be otherwise!!


I'm Gonna Be Rich! I tell ya.

Erwin643's picture

I'm surprised you haven't lost your ass by now.

It's not Right to hate - it's Left's picture

The fake Rooskie connection libtard witch hunt to start up in a week or two.  The Don will need another looky over there shiney object to distract the sheeple from his huuge winning.  Look out Kim Young Pig!

Fullmetal Anarchist's picture

What's the saying... "Central banks can prop up the market longer than you can stay liquid..."

Bryan's picture

After a long enough time period, even the most codependent or even devoted wife gets tired of being beaten.

besnook's picture

she's been dead for 8 years. enough already.

Scuba Steve's picture

She's dead Jim ... get off of her.

besnook's picture

i have some june puts that just went to zero this morning. still almost 2 months left to get them back in the money.lol

aloha_snakbar's picture

Careful what ye wish for; when the last bear capitulates is precisely when the market will crash...

mily's picture

We are still 70M of short interest "too many" to get back to 2007 level.

I really love those ZH charts with carefully selected range to show the end is nigh. I would like to see same chart but extended to 2004

imbrbing's picture
"It appears the bears have almost fully "thrown in the towel" as short interest in the US equity market's most liquid ETF has tumbled to its lowest since May 2007."

Time to go after the longs now?

Yen Cross's picture

  This is good news... Aside from those "gamma""call selling retards getting crushed with "buy stops", I see some opportunities.

Blankfuck's picture

Thank the Fed Reserve for taking control of the markets with fake news and printing presses

ali-ali-al-qomfri's picture

is it a the a Amazing Spider-Man towel????

you know that's collectable right.......

mine is in a ziplock bag, in a trunk in the attic alongwith my cheesepope grader.

Cephisus's picture

The markets have a way of postponing disasters.