Following July's leg higher, it seems that traders on the short side have cut and run. As shown in the chart below, the average stock in the S&P 500 had 4.97% of its float sold short as of the end of July. This is the lowest level since January 30th, and marks a decline of 17% from the peak levels in July 2008. Bears will cite this number as proof that investors are crowded on the long side. While bulls would probably prefer to see higher levels of short interest, they are likely to note that short interest still remains high from a longer-term perspective.
Thanks for the heads up!
Posted by: Andre Payne | August 12, 2009 at 08:55 PM
What heads up?
What does it mean?
You could say the short position is now back to levels where this rally began...therefore bullish..
Posted by: Arthur | August 27, 2009 at 09:21 AM