Looking at this chart also confirms one simple truth. The market always fades the group think trade.
It was a cold November morning as I took my first step into the dark canyon. The challenge of running to the north rim and back awaited; but this journey was greater than the 50 miles before me. This was about discovering the greatness that lies within us. We all have dreams, desires to achieve what others say cannot be done. With passion, hard work and the willingness to suffer, our success awaits.
"Life is either a daring adventure or nothing" - Helen Keller
Friday, December 31, 2010
NYSE Short Interest VS SPX
Short interest on the NYSE has moved down considerably the past few months. It appears much of the rise in risk assets has been more shorts covering positions versus new long positions entering the market. The question then becomes as we enter 2011 who is left to bid this market higher? Shorts for the most part have capitulated while markets have seen record outflows from equity funds. Sentiment surveys (AAII and Investor Intelligence) have all been reading multi year highs from % Bullish to Bull Bear spreads. Simply translated, pretty much everyone is "all in." Additionally with the VIX at the lows of the year and the margin debt at LEH highs selling in the face of any shock to the system could be greater than most anticipate.
Looking at this chart also confirms one simple truth. The market always fades the group think trade.
Looking at this chart also confirms one simple truth. The market always fades the group think trade.
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