Friday, February 25, 2011

This Market Is All Long

After being beaten for months, shorts have truly capitulated as represented by NYSE short interest.   We've seen endless short covering rallies the past few months but those rallies are running out of fuel.  What happens when the market begins to roll over?  Longs are all invested with cash levels at record lows, while shorts have covered.  Who puts a bid in the market?

When this market corrects and it will happen someday,  there will literally be no one to squeeze.  The bulls will have to rally the market themselves and not the bears for a change.



  1. Do you keep your own data on short interest or is this available online?

  2. I have to piecemeal from various sources. Short interest (at least anything somewhat real time) is pretty tough to get ahold of.