A Picture Paints A Thousand Words (Well Just Two - Short Squeeze)

Tyler Durden's picture

We have highlighted this before but given the incessant rumblings that everything is fixed and that nationalizations, recaps, and EFSF votes are 'positive', we thought a reflection on what is really going on would be useful. The mother of all short squeezes as we mentioned recently continues - catalyzed by the since refuted FT Rumor of a pan-European bank recap 'plan'. The fact that Short Interest is at its highest since the "generational lows" only helps.

The red line is the Goldman Sachs most-shorted index from the Russell components and the green line is the Russell 3000. Note the impressive outperformance (+9.9% vs 6.8%) since the FT rumor of the  'short' index - while not foolproof, certainly a good sentiment indication that shorts have been highly uncomfortable.


Chart: Bloomberg

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SheepDog-One's picture

DOW 50,000, gas $20, avg trip to the grocery store $1,500.

Ruffcut's picture

And the look on your 4 yearolds face that you will never be able to afford another happy meal, priceless.

But there's the mastersfuckingyouintheass card, for everything else.

Long-John-Silver's picture

Every meal will be a happy meal no matter what sort of food it is.

Fluffybunny's picture

Bread diluted with some sawdust will be a great treat.

Mitch Comestein's picture

Tumbleweeds with salt......back to the dustbowl days.

Randall Cabot's picture

Dental floss chowder can be quite tasty if prepared properly.

centerline's picture

Gotta keep those squirrels in the backyard fed well for now.  Reminds me to load up on spices.

sun tzu's picture

The raptors are eating all the squirrels. I suppose I can eat the raptors. 

jonjon831983's picture

Good call! Can't wait for Melamine milk!

ilovefreedom's picture

The New American dream:  Wanting a better life for your children, hoping they won't grow up eating bugs

Long-John-Silver's picture

Physical Gold and Silver will be barter only, no one will trade it for paper or digital dollars.

Prairie Fire's picture

Au Ag yea yea yea...

A friend of mine has an even better/cheaper idea: coffee beans.

Imagine waking up after the big fall--either you're going to be reaching for your whiskey, your gun, your pot...

And your morning coffee.

MrBinkeyWhat's picture

Toilet paper...maybe cigarettes. ;-)

crazyjsmith's picture



Hey, I will give you a 3 pack for those eggs and that piece of ham.


YesWeKahn's picture

you talk about new $ or the old $?

IQ 145's picture

Making money on my Long positions on the S&P @1105; BAC @$5.70; F @ $9.85; appreciate your shorts; as you take your losses it will help me make more money; thanks for believing everything your guru told you. We appreciate it.

SheepDog-One's picture

You 'made money' I see so youre declaring you sold? Until the sell order clears, you havent made jack shit and all your gains can easily be a big negative by tomorrows open, IQ45.

MrBinkeyWhat's picture

I am not selling any of my stuff. Lead & Brass is looking GREAT! Acquired my "junk" silver @ face value...BITCHEZ! Farm land is dropping in price nicely (lower property taxes)...What is not to like?

"Bring out your dead"...

IQ 145's picture

the phrase "making money" is understood by most literate humans. You are correct; nothing is booked.

Aeonios's picture

Sad to say I doubt it, sheeps. They've still got til the 1180-1190s SPX before they come to their senses, based on the last tape-painting exercise. Never underestimate herd stupidity, especially when they get to hear what they want to hear.

Robslob's picture

It is clear IQ-145 is another spin-off of RoboTrader.

zorba THE GREEK's picture

My cousin started day trading 6 months ago and now he's a millionaire. 

Too bad he was a billionaire when he started.

walküre's picture

You bought BAC @5.70 before it dropped almost another 10% - Idiot!

Is their website back up? I lost track.

J 457's picture

You forgot to mention you bought BAC at $16.60 and Ford at 18.30.  Wow, does your guru Cramer really know his stuff.  Now that you made your 10% back (still down 70%) you'd be smart to sell...

YesWeKahn's picture

This is a good trade, I love it. I expect that we finish the rally tomorrow morning. The bad news always comes out during the weekend. I will short a little this afternoon.

bob_dabolina's picture

The bad news could come out tomorrow with NFP

The market has some rosiness priced in (not sure why with 150,000 planned layoffs for Sept)

GeneMarchbanks's picture

Quick postin' bobby! You got me pal the technology failed me. Friday is always dirty laundry day last hour & after close. Be warned.

Popo's picture

Lots of people calling for a rally until the end of the year, and a plunge after the holidays...  Tough call... I say we dive sooner, but I'm always amazed by the power of extend and pretend....

MaskedAsASheep's picture

Through ZH about a month ago I found this roughly ahhhh <90% accurate blogger...

You guys may know him -----> pebblewriter look him him up at http://pebblewriter.blogspot.com/


His techs calls for 1040 by next week 1200 by year end and 350 by 12/12 here ----> http://bit.ly/qtxIhl


Happy trading!

Smiddywesson's picture

I say everything, including gold and silver, bounces around in a range until the wheels come off.  There is no limit to the manipulation we are seeing, so why would I think it will stop before everything blows up?  What's going to stop it, the manipulators, will they run out of money or motivation?  No.  Range bound wackiness is the norm from now until the financial apocalypse, because that's exactly what you'll get when they finally lose control.

Nedly66's picture

or good news...

Bad NFP = market tanks right away


Good NFP = market surges for 30 minutes - 1 hour to sucker in the retail crowd, before tanking.


Either way doesn't really make much of a difference

Prairie Fire's picture

I agree, but over the last 3 years I've been trying to do the opposite of what my gut/DD tells me.

Obviously tomorrow the NFP numbers will be bullish--even if they're imaginary. I bet you that they exceed estimates and this party upwards continues.

catacl1sm's picture

NFP of 0 isn't bullish. That's what I'm expecting. I'm sure GS will adjust their numbers right before the number is released.

Growyourownfood's picture

expect a beat on NFP. hence why we have been rallying. 100,000+

Prairie Fire's picture

Zero is positive in these markets.

It just lacks the shock and awe of a +10 000 (or some arbitrary number that will be revised downwards later)--and that's what the crackheads out there want, shock and awe.

RmcAZ's picture

Negative is the new positive. Positive is also positive.

zorba THE GREEK's picture

Thank heaven Obama saved all those jobs with his programs or unemployment would be much higher right now.

If the DNC had any sense, they wouldn't even nominate him for the next election.

merizobeach's picture

Do the Dems even have anybody after Obama (except for Kucinich who, like Paul, will NEVER receive his party's nomination)?  Clinton?  Puke, no.  I would say Howard, but I recall reading that he wouldn't run in exchange for being made party chairman.  When I asked if the Reps even have anybody (other than Paul) to go against Obama, people like Bachmann and Perry come out of the woodwork.  I'll actually be surprised if Obama doesn't win.

I'd vote for Paul/Kucinich if they'd both break ranks.  My estimate that'll happen: <1% probability.  Does anyone have a link to one of those probability exchanges--where people gauge the likelihood of an outcome by making moneyless bets in a market-style exchange?  There's such a thing from one of the universities in Taipei that looks at local events at seems to predict outcomes better than the many slanted polls.

SheepDog-One's picture

The 150,000 planned layoffs is probably good news as they were expecting 200,000.

Aeonios's picture

The last two ISM reports were manipulated bullshit numbers. What makes you think the NFP will be any different? =\

Prairie Fire's picture

You know who was famous for invading countries over the weekend?



Iam Rich's picture

If the NFP is off, we will see a selloff in the morning then meltup nearly into the close on Friday...wait til then if you are considering shorting.

SheepDog-One's picture

Everyone well trained, certain even after a possible drop there will definitely be another rise back over the top and then a lot more. Conditioning going perfectly, everyone calm as Hindu cows.

mynhair's picture

I'll take TZA for 38, Alex!