NYSE Short Interest Plunges By Most Since January, As Equity Outflows Hit One Month High

Tyler Durden's picture

Those hoping that the recent short squeeze which took the market to just why of its 2012 highs will repeat itself may be disappointed, because according to the NYSE, Short Interest as of June 29 plunged to 14.2 billion shares, from well over 14.7 billion two weeks prior, a drop of over half a billion shares, or the most since January, when the combination of LTRO 1, Twist and renewed hope that the economy was "improving" forced 783K shares to cover into the big October-March ramp. The current short interest level of 14.2 billion shares is the third highest of 2012, and was last seen back in November 2011 when the market needed a global coordinated intervention and the ECB's LTRO announcement to prevent i from taking out 2012 lows.

Not helping things was the just announced latest weekly update from the ICI, showing that in the week ended July 4, another $3.1 billion was withdrawn from domestic equity mutual funds. Traditionally, retail outflows have been a contrarian indicator, but not in the new normal, in which there have been virtually no mutual fund inflows at all. Indicatively, YTD $62.6 billion has been pulled from equity mutual funds, compared to $21.5 billion in 2011.

Is the level of confidence in the stock market this year 3 times less than last? Sounds about right.

For the sake of all those mutual fund managers, we hope all that European money market cash which is no longer welcome courtesy of ZIRP, rotates into fund AUM, or else ongoing redemption requests by an aging investing population can only be met with ever more asset liquidations.

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LawsofPhysics's picture

Better to ask if you need to have actual "buyers" for those assets.  There is no market Neil.

Comay Mierda's picture

just BTFD at 3:30pm EST in time for PPT

HardAssets's picture

Good point, there's so much b.s. that one could justify use of even more quote marks. Such as :

"Better to ask if you need to have actual "buyers" for those "assets". There is no "market" Neil. "


MillionDollarBoner_'s picture

eeerrrr...this is bullish, right?...

zero19451945's picture

The amounts that are being pulled out are small potatoes next to the amount being injected by Bernanke.

SheepDog-One's picture


Caviar Emptor's picture

When there's no new Ponzi money flowing in from the Fed the market goes nowhere.

Never One Roach's picture

<<Indicatively, YTD $62.6 billion has been pulled from equity mutual funds>>

Says it all. In addition, Bill Gross on CNBC yesterday looked a little scared....saying there is credit shortfall and we need another QE or the bloodbath would continue. He emphasized ,"the Fed now buys 70% of the treasuries."

The Fed IS the market.

eclectic syncretist's picture

From the sound of yesterday's minutes the Fed is scared that the government won't take on enough of their imaginary debt to prevent a severe economic contraction.  The government is already borrowing at an unprecedented pace and the Fed is warning Congress that they should increase it further while maintaining "long-term fiscal sustainability".  These two things are not simultaneously possible.  Bad Moon Risin'.

BlueStreet's picture

The shorts are just getting sick and tired of this rigged bullshit.  

HyperLazy's picture

There is supreme bull shit going on. I just got home from pulling an all nighter at work and what do I see? /ES 1320 low and we are at 1331 now? VIX a week ago at 17.5 with /ES at 1375 and look at it now. REALLY? REALLY? OH lets just smack down some commodities and ramp the equities back up while global fiat spaghettifies into the singularity of treasury notes. GREAT PLAN!

illyia's picture

Those hoping that the recent short squeeze which took the market to just why of its 2012 highs...

Ironic ZHism of the year. Purrfection.

michigan independant's picture

Thank you for the article.

Meesohaawnee's picture

of course theres no short interest. Why would you in  a rigged market ?? just look at the tape today.. duhh..

s2c's picture

Tyler, you are getting quoted on all the Wall Street runs as causing the spike in MBIA equty.

ParkAveFlasher's picture

That's great.  Investigation in 5...4...3...

Meesohaawnee's picture

no short interest in a market that has a SHORT BAN. Ben just didnt make an official PR release. its so freakin obvious. ! The whole idea this week is to not draw attention to JPM. Ben knows his master and hes on his knees. Jamie puts peanut butter on his pecker and Ben is the trailer park collie that licks it

Grey-Ghost's picture

There are still many small countries left to loot and many an "enemy" to kill and pillage their far away, defenseless, but resources rich lands.

The Decline / End of the White / West / Civilization ("a good idea," the last part, according to Gandhi) will be marked with the same colors its ascend had been marking it with throughout the centuries: red as the blood of the people they murdered and enslaved and yellow as the gold they stole (replace Inca gold with Iraq oil and you'll see it's all the same).

WW2 victory (thus the rising military machine) and the Breton Woods (dollar as the world's reserve currency) gave all the upper hands to what has become the fascist United States, the evil ruler of the world, and boy, did they enjoy having their boot on the world's neck. Even in the pre-fascist (at home I mean) era, the boiled frogs nation (f.k.a. Americans) never asked - "What does my country do to other countries that we're having so good and they so bad..." - but now they have a tiny little opening into the window of what they have been doing to the world, for decades. (looting, pillaging, murdering so the few Overlords of the brainwashed nation can indulge their sociopath joys, in the name of the said nation)

It is now, like the Camus's plague (fascism) that "rouse up its rats again and send them forth to die in some happy city," coming home and it is not going to be nice. It was never nice for the others they killed and keep murdering. At the end, when they, hungry and desolate, as the caricatures of what once used to be "a land of the free and home of the brave" will observe a smoldering rubbles of their hometowns all across the country, they will not even be aware it is all their own fault.

As they turned into a cowardly nation that forfeited its freedoms (TSA molestation of their own kids they so meekly accept tells me all I need to know about the moral, mental, psychological state of the nation that succumbed to it...) for the coziness of a gadget or two and the FB "Likes", while equally lazy kept voting for either Repulsive or Despicable "candidate" of the same fascists party on power (forever it seems), they have written their own epithapf.

I only feel sorry for the countless millions their country will - in their name - keep killing until this mindless, greedily, bloodthirsty beast does not die of self-inflicted wounds.


Screwball's picture

How many times over the last year have we seen a 10 point recovery intraday in the S&P?

Seems like every friken day.  I know HAL9000 is in control but geez louise.

Yet the politico's are out there talking about free markets.

What free markets?  They are simply a fucking joke.

Boilermaker's picture

There's no reasons nor intention to hide it anymore.  Once everyone knows and accepts that it's a rigged POS, what's the point?

Just go about doing it.

Screwball's picture

@Boilermake - kind of like the fucking REITS huh?


I always get a kick out of your REIT rants.  Well done and deserved.  Make no lick of sense.


Carry on Sir.

Boilermaker's picture

Short Interest....good one.

Meesohaawnee's picture

which begs the question screwball.. if you can implement a stealth short ban why wasnt it done in 08? hmm. Your dead freaking on. This is a fuckin joke, and i blame the one at the top. Since he knows he benefits hes not gonna get on the bat phone and tell bernak to just fuckin let it alone.  We are simply paying for his re election. Simple as that.

HardAssets's picture

I saw a video of him during the election campaign back in '08. He spoke at a confernce with some financial guys. It was obvious that he didn't have a freakin' clue about business. He's just a slick talking lawyer.

They are all briefed to sound half intelligent after getting in office, but I doubt he's the one directing the Bernank

Screwball's picture

I looks that way, but there are a lot of people that have interest in keeping these markets levitated. Who owns most of the market?  Who has the most to lose?


TPTB are bigger than the dipshits in DC, they all work for a higher master - the fucking banks and banksters.

Meesohaawnee's picture

hes not directing. hes enabling. thats always at the top of my accountabilty list. The enabler.

Boilermaker's picture

And...we have LIFT OFF>>>>

Green is good, red is bad, now just jam the living shit out of it to close the day.

SPX +8 by close.  DOW a headline grabbing hundo.

crzyhun's picture

OK, so the highest short int out there since 09, was the big Fri 230+ points... now the reverse. do you think or is that expecting too much, that now the bottom is comming on the 4 year cylce? not the election- the other one, yes there are two; the other one is predominant.

q99x2's picture

Doesn't even make sense to leave the money in while you wait to short the collapse.

Jack Sheet's picture

Naked shorts included?