thursday brainstorming – Defcon 1 for bulls

1. Markets have reached almost the targets SPX 1300-10 still its time to raise Defcon 1 for bulls. Apple has reached my targetzone 420-30 and marked a second weekly 13 count with a daily 13.

Daily SPX counted a daily 11 yesterday ( again running for 13) which might even come today. Sentiment overall has moved to slightly bullish almost on all even ISE MAs are in that territory but most important alarming  should be the NYSE short number.

We are about to make a top for at least a 7-11% retreat from the 1300 level any day now – the only delay may come from the small heliocentric mercury effect which is one more reason to cover Euro shorts for now and even be long briefly as may targets were met around the 1.27 level.


Plunge In NYSE Short Interest Explains Recent Market Rally

Tyler Durden's picture

Submitted by Tyler Durden on 01/12/2012 12:03 -0500

UPDATE: As an observation, QQQ Short-Interest is at 11 year lows (January 2001)

Curious what has provoked a vicious year end (and 2012 year beginning) Santa Rally, which until today had seen the S&P trade higher on 12 out of 15 consecutive days? Wonder no more: the reason is the same it has always been – year end short covering, which in turn has spilt over into the new year’s momentum chasing HFT brigade and the occasional retail momo who still has some cash left after covering commission costs. According to the latest NYSE biweekly update, the short interest as of the end of 2011 was a modest 12.8 billion shares, a sharp drop from the 13.4 billion and 14.2 billion 2 and 4 weeks prior, and certainly a very far cry from the over 16 billion shares short which market the market bottom in late September. Also, for anyone wondering why so far 2012 is an identical replica of 2011, decoupling and all, look no further than the SI data as of early 2011 – SSDD. Short covered, and only as the year unwound did they dare to challenge the central banks and to increase their shorting activity.


~ by behindthematrix on January 12, 2012.

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