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A Picture Paints A Thousand Words (Well Just Two - Short Squeeze)
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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Yes; he blends in perfectly. LOL.
Farts are bullish !!!!!!!
How is it with this hurricane of printing going on like mad, the CURRENCIES are level and steady thru all of it??
Cuz wet ink all smells the same.
they all manipulate their currency. They're printing, but not telling... it's not lady like.
When the facts don't fit your theory; it's often a good idea to question your theory, or model. In other words, you are amazed because you have no idea what's going on. The hurricane of printing that's so popular and worth repeating endlessly on the blogs you approve of; is actually trying to fill up a swimming pool with a garden hose.
Did they mention the chance the US recession being brought on by their failing?
It is 100% q1 2012-2014. I undertook little exercise to create:
Prediction chart of US debt max, default time, haircut,inflationIts explained in more detail here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&p=34423#p34423
All in all, US debt will reach 21 TRILLION USD in early 2016 at default. Taking into account GDP 2011 = GDP 2010 (14,7 trillion USD) and 4% /year recession 2012-2015, the ratio DEBT/GDP may be close to 170-180%. In any case, >150%. That is a bit higher than the ratio Greece had in 2010 ( 140%) which prompted bailout from EU and IMF to avoid immediate default. No one is able to bailout the USA in 2016.
Haircut will be between 50-75% in 2017-2018, so inflation roughly 25% a year. This corresponds to USDX long term prediction chart (2012-2018) made here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...
and as related to it, but made earlier and independently, long term ( 2012-2018) EUR/USD rate prediction chart made here:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&sta...
so everything fits wiht deflationary recession in the USA q1 2012-end of 2014.
WHAT DO YOU THINK?
I think wiht is the wi-fi equivalent for HFTs.
I'm stocked up on bullets, beans, and beers.
Now I know where all my beer went.....
Not to worry. The economy sucks and it's going to suck more. Cutbacks in gov and private sector being announced everywhere, every day. Debt deflation overhang, price inflation, generational structural unemployment, middle class priced out of the middle and into the lower. It all looks good from here
YEA I just heard this morning from a city worker how theyre facing a $3 cut in pay, dropping insurance, and already NEXT years 'budget' to fix roads etc has already been tapped out! Fuckin unbelievable! But HEY, the DOW's UP! Hoorah...
but, but, oBLAHma said there are roads to be fixed! reminds me of the movie "Falling Down." "there's nothing wrong with this road, is there?"
i was just looking @ the R2K and thinking it was up about 11% off its lows...
you auto sell, now?
buy "inexpensive puts" just in case we go to "risk off" someday soon?
BiCheZ?
I figure the markets now chase up or down simply based on where any money might come in. Wash rinse repeat.
Don't know if it is safe to go lower than 580 on those puts, but I'm chicken.
Complete and total horseshit of a market. broken and corrupt at levels extending far outside the markets themselves. This is a global fucfest and the middle class is the only one bent over.
Hey, golden toilets are not cheap...someone has to pay for them. So, some children and old people suffer - if you want omelets you gotta break a few (million) nest eggs.
Glad to see some of the old hands out again. I still miss all my fellow trolls though. Where did they all go?
You knew a short term rally was imminent when the Bloomberg bimbos were Declaring.."Official Bear Market" has started.. Thats all it is though, a Bloomberg Bimbo Bounce.
Only about 20-30 spx points max left in this ramp imo.
QE4 anybody? http://www.youtube.com/watch?v=UI2FolId6CA
Once the shorts are gone - where is the fuel to send the S&P higher? HFT can move the market up...but they can't hold it there.
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