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NYSE Short Interest Drops To Two Month Low As Weak Hands Have Been Squeezed Out
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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Yesterday told the story 1255
cue trap-door floor.
1205
Then up 3-5 times
Open trap drop 40-53 percentage
You were forewarned as 5+5+2+1=13
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:
Popcorn
Beer
Silver
Ben Bernank dartboards
BAC physical stock certificates for wallpaper.
Too funny...
"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..
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.
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.
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.
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!
Get ready for part deux after we hit the resistance at 1720, it'll be another sub 1700 couple of days/weeks.
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?
http://www.dailypaul.com/184248/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 ?
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...?
I think he meant off-topic. Lighten up, already.
There are plenty of trolls around without imagining them.
Yes I meant off topic...sorry, it's late on this side of the planet..pardon my French.
Regrets. I'm a little fiesty today for reasons that are "off topic". :)
No pb Mayhem...I'll teach you some acadian someday...
NH must have decided on a primary date.
Did you know feds will temporarily cut off all TV and radio broadcasts on Nov 9?
http://www.dailypaul.com/184248/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.
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.
Hmmmmmm, thought you were an ex-pat......
Does the drill have a name, like Valkyrie?
Götterdämmerung
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 ...
Regards,
Cooter
Practice for imposition of martial law.
hth.
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!
Ready, along with many neighbors. Nothing new. Chance always favors the prepared.
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)
http://www.ioc-cd.org/index.php?option=com_oe&task=viewEventRecord&event...
http://www.infowars.com/beck-eas-test-allows-feds-to-seize-control-of-communications/
Guess I'll need to go dust off the old HAM radio in the fallout shelter.
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.
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
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.
Even if that fails, there is always Rigel 7.
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.
Isn't that the hooch that comes in the square bottle?
I'm tapped out Marv. American Express' got a hit man lookin' for me
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.
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.
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.
gh
only God or its 'working' Proxy: GS would know whether if they were lucky or weak hands that got squeezed out
Radar: Choppers, incoming!
Hawkeye: We're plum out of needles.
Winchester: Yes, but we're long body bags.
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?
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?
You are right.
It is not wealth generating it is wealth shifting.
Your goal is to make sure some of that shifts your way.
Truth - You sir, speak the TRUTH! I, with all honesty and conviction salute you!
Rock on............
I grudgingly agree.
But what am I supposed to do to protect my family and ensure they have the money to improve their opportunities?
you report immediately, any kids that are operating lemonade stands!
Topcallingtroll - You do everthing you can to increase your holdings in preparation. There is nothing wrong with this. Just remember your brethren along the way. For the time will come, and I belive soon, when two kinds of people will exist. Those who were fortunate enough to prepare and those sheeple who did not figure it out until it was too late. The sheeple are the ones who will be looking for answers and demanding help. The government will try to offer to them the solution. This will be our crossroads. A razors thin moment in time. The more people are prepared and or willing to help, the less likely the government will be able to shove another rigged system with even less freedoms down our throat.
"I always thought that was some cold blooded shit to say to a motherfucker before I popped a cap in his ass." -Jules Winnifield
Correct, and Stax was in Goodfellas
Everyone just seems to believe we're in this cyclical economy and the range bound market perpetrated by the Wall Street banks and the Federal Reserve do so to not just make money but to give the illusion there will be money to be made by Mrs. Havercamp down the street. But you have to ask yourself: at what point do the structural forces take over from this cyclical perception that we're in? They will. That much will be guaranteed.
This is no cyclical downturn, and even with as little faith as I have in the sheeple, I honestly believe that many of said sheeple have awakened to the fact that we're trapped in a structural crisis.
Besides, it is the duty of the truly Patriotic to never give up on, no matter how frustrating the task, trying to awaken those who are asleep.
Down with Skynet.
Take your pick of what kind of downturn it is. I'll rank mine in order of our demise.
1. Financial. The banks are leveraged up with garbage. Not enough captial. (Usually the Worst kind).
2. Structural. The demographics of the baby boomers and wall street's greed does them in. They want nothing to do with the market. And rightfully so. The HFTs will not give anybody a chance to make money with no volume.
3. Cyclical. Maybe a little if we think of it as how long the FED has pushed this boom and now we must come back to reality.
Agreed, but those who are asleep must really be interested in awakening; otherwise you may as well piss up a rope.
if it helps, i bought some SDOW today. That said, i'll probally get crushed on it tomorrow due to some BS news/story/rumor from ____________ (insert bankrupt country of your choice).
Hahahaha! They missed me! (Would've folded on 2 bucks more off TZA.)
a case of weak hands, eh?
I think Mitt's response to Perry's charge of being a Fat Cat is another sign of weak hands.
15 sec. Attack ad can be seen here: http://www.youtube.com/watch?v=JCUhrCnJv0k
Slime vs slime.
CNN at it's finest.
we need to burn them ALL! OUT!! of Washington DC and put some real people into office.
http://www.youtube.com/watch?v=omqe2gWZgGg&list=FLbRZZAixeFXZfqszvKisEdQ&index=2
Uploaded by TheRealNews on Oct 24, 2011
Bill Black: If I marched with Occupy Wall St. to the New York Fed, this is what I would demand.
piece is way to0 long. nearly 12 minutes... that's like an eternity.
find you inner Harvey Weinstein and get cutting.
go back to huffington post and finger paint with your own shit all over your own kind.
Working Paper No. 11/244: Monetary Policy, Bank Leverage, and Financial Stability Author/Editor: Valencia, Fabian Summary: This paper develops a model to assess how monetary policy rates affect bank risk-taking. In the model, a reduction in the risk-free rate increases lending profitability by reducing funding costs and increasing the surplus the monopolistic bank extracts from borrowers. Under limited liability, this increased profitability affects only upside returns, inducing the bank to take excessive leverage and hence risk. Excessive risk-taking increases as the interest rate decreases. At a broader level, the model illustrates how a benign macroeconomic environment can lead to excessive risk-taking, and thus it highlights a role for macroprudential regulation.
http://www.imf.org/external/pubs/cat/longres.aspx?sk=25309.0
Thanks JW. It's always something of a relief listening to Bill Black.
told ya.
Call it a short squeeze. Call it anything you like. But the fact is that the first part of any upmove is short covering. I have a hard time believing that a 15% move in the indexes is "weak shorts" covering. Presumably the "strong" and by inference, "smart" shorts would get shorter. Unless the weak shorts outnumber the strong shorts...LOL
Time will tell.
You fergot to couple it with the EUR squeeze. That gave 9% of your 15%.
A week after the stock squeeze, if you were paying attention.
Do you all think that they won't paper over this Euro thing? Who is running things anyway? These folks know how to delay and give time a chance.... Like lawyers do. Who benefits from a collapse of the euro banks?
Like I said, time will tell. And even if the shorts are right, they can all be wrong because there are so many of them. It is a market. I trade the market.
gh
You obviously have not traded many bear markets prior to now.
this is the third.
Has any one else noticed that the short interest is almost completely counter trend? (This is sarcasm, for the American contingent)
Do they like giving money away?
Is that victory I smell?
No, it's Harry Reid.
http://www.youtube.com/watch?v=UP6qeBPl_HA
DOG and SH, purchased every day during this bullshit rally. today worked out nicely. tomorrow should as well.
Don't forget AGQ.
Since ZH has been so wrong for so long about the stock market, I am, for kicks, going contrary:o buy a long future on the NASDAQ.
You have 5 days to be right about a continuing melt down.
If I had done this on the every stock market prediction you have made these last two years, I do believe that I would be quite a bit more well off.
I'm certain others will correct me if I am misunderestimating you.
Good luck predicting Goobermint interventions.
anony, go for it:
TYH
TNA
FAS
and all the other 2X 3X bull ETFs from now until end of November. Watch and see your $$$ disappear.
Don't knock 'em. Made 95 bennies off TNA today.
Though only cuz I had to make a beer run.
(Always put a sell and stop in if I'm leaving for over 2 mins)
I like that thought. If I leave for over 2 minutes.
Thank God...so sick of the weak short covering rallies
es neckline retest and fail at around 1245 imo...nothing but bad macro news and broken charts...this october "rally" is done methinks
Unless the 'on' button is pressed on the Berprinter. Another LSAP will be a bitch.
So, this latest number is as of what...mid-October?
I survived the squeeze without covering. If there is no test of the S&P/ES 40 DMA, I will be all set to see green.
Ya, 2 weeks of yard work and 'honey do' is too painful. Tank this pig!
Also, still seems like an above-average amount of shorts.
They aren't the weak hands. Press them further, and they'll double down?
Gotta LSAP them.
they will be LSAPed
You seem to be the only person here who knows how to read a chart.
Either way the Europe situation is solved and solving debt with more debt is the answer. The cancer we call central banks continue their genocidal tendencies and any public objection to the inequality is scoffed at by MSM and pricks who don't get it.
/Sarc
By the way, the chart looks like the one posted in the last article of NYSE shorts.
The short base has hardly budged. And most shorting is done via index futures and options. So this is hardly a complete picture.
"And most shorting is done via index futures and options"
Your opinion, or are there facts to go with that?
Not arguing, just wondering what 'hard to borrow' means.
See also 'forced buy in'.
lol wut
SPY is basically the most liquid equity instrument to hedge exposure to any US products, and is used everywhere as a hedge from commodities to cash bonds to credit. Options have way too much exterior noise and MM games come every OpEx.
Still a busted market after the Aug sell off, so we are still trading under the Aug 3rd resistance. It's now rolling over, check your charts. Point is, short position hedges will multiply now as we all know that the Europeans are doomed. Either we get some nice volatility, or just a major sell-off like in Aug that will push through all the Aug/Sep/Oct support/s. The whole thing could drop to new lows.
Or go to new highs. No one on this site knows what intervention may or may not be implemented (announced or not).
Dangerous, but interesting, times. Personally I see great opportunity as I can smell the fear on all the "financial pros". Love it
No I think we are all f*cking done. QE whatever hasn't done anything. ECB is all a perpetual money pump, it's pumped BILLIONS into the Euro banks that are worst than US banks in in 2007/2008. It's done nothing. QE2 flowed straight to Wall Street, everyone knows that, Goldman licked it up and the market went bid for a whole yr (2009).
It ends.
Because the creditors (Asia) are looking ill type Wenzhou, China's debt panic in goggle.
Asia and Europe could go at the same time. Make Lehman look like nothing.
QE was never for you or I to begin with. I am guessing that like myself you are employed and pay taxes. Funny how the owners of the world and very poor have at least one thing in common, they don't. Both get money for nothing as well.
It will be interesting to see if the Bernank has a death wish. I don't think the American people will stand for any more of his money printing. Only communists and fascists want it, anyhow. The cheerleaders on CNBC are just that. I think you will see fireworks in congress before you see fireworks in the S&P if he does it again....JMHO...
I would be watching futures for the major selling, I remeber when the DAX was traing 7% negative a mth or so back, that market was shorted to hell.
I repeat Europe is doomed, you crazy Europeans... :)
Everything is going up up up, no doubt. sorry shorts... brics and aliens are bailouting everyone, as agreed with Silvio B. and north-african girlfriends... bad luck guys.
No we are F*cked. It's all chaos now.
Drop can't happen tomorrow when there is no real solution from the summit, could it? Nah! Timing would be too perfect.
Even if there's no solution, it's not the end of the world. Don't forget Greece has been fed its small, unsatisfying ration of IMF kibble, sufficient to keep it limping along on the edge of the cliff.
As with the US debt ceiling idiotastrophy, there's much more kibble, and much more time (a couple of years, easily) for Europe to carry on their infighting while Uncle Ben and Grandpa Noda unzip and pull out their... err... sprinklers again, showering the world with good old gold green.
Personally, I think much of today's drop was due to repositioning for treasury auctions and going to cash last night. I certainly was. Tomorrow is indeed a big day, we wait and see.
rumors coming through that the EU wend meeting has been cancelled! On wires.
hahahaah what a joke
I just heard it on the radio. came to ZH for the scoop but nothing here so far.
They're talking about the finance minister meeting, that's old news:
European Stocks Decline as Tomorrows’ Finance-Minister Meeting Is Canceled
Q By Adam Haigh - Oct 25, 2011 12:04 PM ET
Oct. 25 (Bloomberg) -- Simon Maughan, head of sales and distribution at MF Global Ltd., discusses European banks' exposure to Greek debt and third-quarter earnings at UBS AG and Deutsche Bank AG. He talks with Francine Lacqua on Bloomberg Television's "On the Move." (Source: Bloomberg)
European stocks slid from an 11-week high as U.S. consumer confidence fell and a canceled finance ministers’ meeting fueled concern that the region’s leaders may struggle to resolve the debt crisis at a summit tomorrow.
http://www.bloomberg.com/news/2011-10-25/european-stocks-are-little-changed-before-summit-u-s-index-futures-drop.html
thanks, looks like someone was trying to short the EUR Asia's open
but it's still an omen...re: old news.
While TPTB are obsessed with bailing out banks and bond holders they've little to nothing for anyone else. All the central banks have done is move the debt from private to public...and the public does not benefit from endless money printing.
The latest I've heard is that my friend Mugabi from Nigeria needs everyone to wire him $100 so he can then transfer the 10's of millions that he currently holds in a swiss account to rescue the EFSF. I'm not sure I should do it. /sarc
Positioned short.
Methinks that the Big Boyz know that "Stanky" Bernanke is warming up his presses for QE3. While France and germany play stink finger and the Greeks do what Greeks do...
As usual I was one day early for my shorts. ugh, Ok becuase I have enough money to ride it out. today was redemtion adn because a I am able to double down or use buy stops to double I am back ahead. But the problem with sh is that you ahve to trade both sides of the coin at the same time. Very hard to do, better to have one person do long and another so short. no idea where thngs will go, but it doesn;t matter to me because the computer is programmed either way.
you still got gmcr...maybe
This is why they won't ban shorting; it allows the ponzi fluffing to continue - and as long as the kids have some cotton candy they won't be petting the cat or crying.
AMZN, NFLX, CROC and soon AAPL and maaany moooreee.
It's hard to choose now between being short the market and long gold. I think I'll start to slip in and out of those trades if I can get and a good rythem and momentum going.
Sentiment will begin to get overcrowded on the bullish side soon. - After the correction for the SPX today, price action should push higher for the next several days. The DX continues to look bearish in the short term as the EURUSD is pointing higher with equities. More "risk on" ahead. http://bit.ly/uFJB9g