Safe Trading Blog

Looking at short interests on SP500 is always of great interest: the total short interest of all stocks (on SP500) is about 10% (in per cent of the total float of those stocks)… ok, it was 7% at the beginning of the month!

This measure is certainly more complicated to track but also more relevant than the standard Call/Put ratio or VIX (or VXN) sentiment indicators…

As usual, we must focus on the trend: investors are booking short position on the “long” run. OK the stock market is gloomy, but for short term targets, the extremes are more interesting: we have found a decisive increase of the short term interests in only 3 weeks! This is a good contrarian sign that the rebound can take over… see also the previous post today.

This entry was posted on Thursday, March 27th, 2008 at 9:17 am and is filed under Stock Code Trading, US Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.