NYSE Short Interest Drops To Two Month Low As Weak Hands Have Been Squeezed Out

Tyler Durden's picture

It was bound to happen: after hitting a two year high recently at (adjusted) 15.3 billion shares, total NYSE short interest, which failed to be satisfied with a violent market plunge and instead got caught in a vicious short squeeze, has dropped to the lowest level since mid-August, or 14.7 billion shares. Naturally, this, coupled with the massive bearish bias in the euro, discussed previously, where covering merely added to reinforce the squeeze dynamics, are sufficient to explain the weak hands covering following the unprecedented near 1000 point jump in the DJIA. The good news for bears: it appears the weak hands have been shaken off now. At this point, even if no incremental shorts are layered on, then certainly the autopilot melt up in equities will be next to impossible to be sustained, and some real, not rhetorical, pick up in the global economy will be needed. Alas, one is not coming.

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Irish66's picture

Yesterday told the story 1255

Irish66's picture

Then up 3-5 times
Open trap drop 40-53 percentage

knukles's picture

You were forewarned as 5+5+2+1=13

johngaltfla's picture

1260, but who cares. They wanted to crush the shorts they won.

But now, just like 2008, how do they find anyone to cover THEIR crappy bets?

Shopping list:




Ben Bernank dartboards

BAC physical stock certificates for wallpaper.

homersimpson's picture

"They wanted to crush the shorts they won." They won the battle.. but the war is far from over. 1260? Pfft. Sub 700s was only a couple years ago..

Can't wait for FAZ to be in the 4 figure range again..

tmosley's picture

Never happen.  The decay is too rapid.  ANyone holding FAZ overnight, much less over long time periods, is destined to lose everything.  It is for traders, and traders only.

obejoyful's picture

I do agree to a certain extent, but when the banks start going to zero FAZ theoretically could go to infinity if all the banks for bk (x/0).  That wont happen but the several of the large components will go to zeo and that kill the denominator in the equation.  I bought in the 40's this summer and sold 60 to 80 and got all out. Now I am getting back in and may sell again at 80 but will keep some for the possbile black swan event or large bank collapse. 

johngaltfla's picture

If you jumped on FAZ in late March, early April and sold in August at S&P sub 1120, you did pretty danged well....I'm just sayin'.

It's got one more good move left in it then, IMHO, the great "holding company" er, ETF crash/fraud will begin.

Panafrican Funktron Robot's picture

Meanwhile, our long national nightmare below $1700/oz in gold is finally over.  A whole 33 days!  Impressive bear run.  To think, only yesterday I was staring at a mere 15% YTD gain.  The pain of this was truly excrutiating.  Here's hoping for a consolation prize for you momo-monkeys, perhaps you crack/hold positive territory at SPX 1250+ by EOY.  Hey, consumer confidence is a full 2 points above the January 2009 number, bullish!

GeneMarchbanks's picture

Get ready for part deux after we hit the resistance at 1720, it'll be another sub 1700 couple of days/weeks.

destiny's picture

Off the record...don't know where to post this....

Did you know feds will temporarily cut off all TV and radio broadcasts on Nov 9?




Don t know what to make of this. ? anyone ?

mayhem_korner's picture



Just how off the record u think u r?

We only have up and down arrows, why don't we have "ignore" for the fishing trolls...?

NotApplicable's picture

I think he meant off-topic. Lighten up, already.

There are plenty of trolls around without imagining them.

destiny's picture

Yes I meant off topic...sorry, it's late on this side of the planet..pardon my French.

mayhem_korner's picture



Regrets.  I'm a little fiesty today for reasons that are "off topic".  :)

destiny's picture

No pb Mayhem...I'll teach you some acadian someday...

mynhair's picture

NH must have decided on a primary date.

JW n FL's picture



Did you know feds will temporarily cut off all TV and radio broadcasts on Nov 9?




Thank YOU!! for Sharing!! YOU! ROCK!!

this is just a dry run for communication control.. You will see what they want you to see when they want you to see it! But dont worry this is for the Top 1% of the 1%'s safety.. You sheep just need to learn your place.

You dont have the Right to protest peacefully.

You dont have the right to free speech.

You do have the right to be kicked while you are down by the scumbag Corporations on Wall Street.

knukles's picture

One of my good buddies is in the EMT biz.... serious at high public level.  When I asked him, he was all non-plused saying that this kind of thing is done at least once a year.  And I mentioned to him that I didn't recollect countrywide.  He responded that this "time is different", it'll be national, usually done at county level, more broad based, all levels of fire, police, EMT, and dum dah dum dum dummmm das militar will be involved.  So when I asked about whether it was different  he just looked at me like I'm nutziod.  But then again, he's a believer in the old wives tales about candy land, unicorns shitting rainbow colored mint Skittles, all is good for eveyone concerned.
But yes, it's gonna be a Biggie!  Reaching into every facet of public service.  Wonder what the boys at "norteconn" gonna be doin'....
No it ain't business as normal.  Ever note how it just grows and expands a little year by year until it can expand no more as its subsumed every goddamned living thing on the planet?
Yes?  Good for you.
No?  Take some more red pills, watch Dancing with the Retards re-runs and get a fucking life.

mynhair's picture

Hmmmmmm, thought you were an ex-pat......

optimator's picture

Does the drill have a name, like Valkyrie?

CrazyCooter's picture

I guess I will go hiking that day. :-)

On that note, folks might want to start procuring a list of IPs for sites they consider "essential". For example, I can visit ZH at this URL:

A domain name (in the DNS) is to a persons name (in the phone book) as an IP is to a phone number. So just make sure to have the numbers handy and you might be able to be cool on the 9th.

To look up an IP for a domain name in Windows ... Start -> Run -> cmd -> <ENTER> ... then just type "nslookup www.zerohedge.com" and you should see the IP above. Lots of ways to get the IP, that is just one.

I say this because I really doubt they will take down the entire internet, but it would be easy to take most DNS services offline.

If the TD is lurking, might want to have a switch you can toss so we can roll with IPs instead of the domain name (it seems to redirect via a HTTP handler - not sure how that would play out if DNS was toast). Might also be worth doing a post on how to stay plugged in if DNS goes out.

Just talking out my ass, I have no idea what they are really going to do ...



css1971's picture

Practice for imposition of martial law.


JW n FL's picture



come and take them!

there are soooooooooooooooooooooooooo many people that are just waiting for something like that to happen.

and lucky for those people tptb want them thinned out..

so, really it is a win, win.

maybe if the top 1% of the 1% is lucky it can get the tea party killing the occupywallstreet people.. and vice a versa! have two groups of poor people blaming and killing each other!

You cant fix stupid!

LawsofPhysics's picture

Ready, along with many neighbors. Nothing new. Chance always favors the prepared.

D-Man's picture

There is also a pacific wide Tsunami exercise at that same time as the national emergency broadcast system test. Concidentially, or not, there is an asteroid supposed to make a fairly close pass by earth on Nov 8th.

Exercise Pacific Wave 11 will be held on 9 and 10 November 2011, and will involve multiple scenarios, played out in real time, to allow all Pacific countries to select and exercise a regional/local source tsunami event. Countries are recommended to choose only one scenario to exercise. However, countries may exercise more than one scenario simultaneously, if they wish. The exercise scenarios include major tsunamis generated by great earthquakes in the following areas:

• Kamchatka (Kuril–Kamchatka Trench)
• Ryukyu Islands (Nansei–Shoto Trench)
• Philippines–South China Sea (Manila Trench)
• Philippines–Pacific Ocean (Philippines Trench)
• Vanuatu (New Hebrides Trench)
• Tonga (Tonga Trench)
• Northern Chile (Peru–Chile Trench)
• Ecuador (Colombia–Ecuador Trench)
• Central America (Middle America Trench)
• Aleutian Islands (Aleutian Trench)


Gene8696's picture

Guess I'll need to go dust off the old HAM radio in the fallout shelter.

Gohn Galt's picture

The US is doing a national emergency drill using Federal, State and Local Agencies.  I plan to be in an undisclosed secure underground facility.

I think it will be like the worldwide coordinated DEFCON 1 drill where the Denver area was under martial law last month.  We have been getting hit with a lot solar storms taking down satellites and effecting gravity etc...  The last one major storm was on the 24th.  If you have increased allergies or migranes the storm would explain it.

geminiRX's picture

I will be on a secure bar stool in an undisclosed brewery coordinating tilting a glass from a half full approach. Not even certain why you would want to survive a defcon 1 event. You really think you have any control over life.....think again

TruthInSunshine's picture

BRICs are going to bail out the world.

CNBS said so.

And if the BRICs fail to deliver (as Chinese manufacturing and real estate tycoons go on the lam and central planners only begin to tally the regional bad bank loans on a provincial basis), Myanmar, Haiti, Papua New Guinea and North Korea are exploring the formation of a SIV to recapitalize Europe, rescue the global banking system as well as sovereigns, and save the global economy.

Cassandra Syndrome's picture

Even if that fails, there is always Rigel 7.

TruthInSunshine's picture

Wasn't there a Kank or a Kodos involved in the EFSF/EU feeble attempt at preventing an implosion?

Bang Dae-Ho can not be blamed for what we are about to experience, and I'll vouch for his innocence.

knukles's picture

Isn't that the hooch that comes in the square bottle?

gangland's picture


I'm tapped out Marv. American Express' got a hit man lookin' for me

euclidean's picture

ETF, can you format that in single spaced TimesRoman and slap a letter head on it with some unrelated roman figurine. That's analyst material right there and must not be wasted on the mortals of ZH universe.

The force is strong in you, a career as Citi Chief Strategist awaits.

chinaguy's picture

I have a jet plane full of  fine Chinese friends (really good folk) who are waiting to dump money into US Real estate if the " Buy $500K of US RE & get a visa" law is passed.

I suspect that many the of Chinese folks who would take advantage of this law are not so nice...but really, The majority of the Chinese are gentle, nice, educated,,,,and fucking sick and tired of the Shit that is the Party these days.

net, net, letting in these folks who have worked through the system and made boodle would be a GOOD thing for the US.

folks who have been reading my posts since the beginning know I am fairly cynical towards China.

Trolls, Fuck Off.

sellstop's picture

Yes, and the banks could get a lift, and housing could remain expensive. Why does housing need to remain expensive. It is just HOUSING. It is roof over your head and a place to stay warm in the winter. Why does everybody want it to cost a lot of money? Why!!!!?
I will tell you why. Because many people have their hopes set on selling their home for money to live on in old age. The same reason that they all hope for the stock market to go up. And for that reason we all vote for more bailouts. Of the stock market by Greenspoon and Bernank. And Freddie and Fannie. And now Sallie. Cause who doesn't owe money on their education.... We are a nation of the needy who want someone else to pay the bill. We all vote for the politician who promises as we deride the govt. they give us.

raki_d's picture

only God or its 'working' Proxy: GS would know whether if they were lucky or weak hands that got squeezed out

mayhem_korner's picture



Radar:  Choppers, incoming!

Hawkeye:  We're plum out of needles.

Winchester:  Yes, but we're long body bags.

Belarus's picture

And perhaps ironically, the short interest is just slightly lower than it was in 12/08. We all remember all too fondly what happened between then and the March 9, 09 lows. Is the fun about to start? 

LongBalls's picture

I would not bet on it anymore. Everytime things look flat or on the verge of deflationary the FED and system kick in more QE. The markets will continue to rise. This is not real wealth generation (for average Americans) but merely a reflection of inflationary actions by the money changers. Commodities will soar once again and the CME will crush them back down. But alas....The CME is running out of margin bullets. Eventually commodities will reflect the true state of the M2 supply.

Or the EU crashes and takes the whole system down. 

There....can I get a clueless letter writing job too?

topcallingtroll's picture

You are right.

It is not wealth generating it is wealth shifting.

Your goal is to make sure some of that shifts your way.

TruthInSunshine's picture



The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother's keeper and the finder of lost children. And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers.

LongBalls's picture

Truth - You sir, speak the TRUTH! I, with all honesty and conviction salute you!

Rock on............

topcallingtroll's picture

I grudgingly agree.

But what am I supposed to do to protect my family and ensure they have the money to improve their opportunities?

sabra1's picture

you report immediately, any kids that are operating lemonade stands!