“For five years it’s been the fate of American short sellers to be wrong, as the biggest rally since the Internet bubble steamrolled defensive trades.
They’re loading up again, sending bearish wagers in the SPDR exchange-traded fund tracking the Standard & Poor’s 500 Index (VIX) to almost 11 percent of its shares, the highest proportion since 2012, according to data compiled by Bloomberg and Markit Securities Ltd. Bets against atechnology ETF are 67 percent above the 12-month average.
One of the best things you could do in the stock market over the last three years has been to buy shares from short sellers, who borrow stock with the aim of replacing it once the price falls. After bearishness peaked in 2011 and 2012, theS&P 500 rallied more than 14 percent within six months. With U.S.valuations approaching levels not seen since 2007 and the Federal Reserve scaling back stimulus, the bears are back again.
“That, from a trader’s standpoint, is a bullish sign, because you don’t have too much optimism in the market,” Walter “Bucky” Hellwig, who helps manage $17 billion at BB&T Wealth Management in Birmingham,Alabama, said by phone. “That there isn’t unbridled optimism shows that there could be more upside.”
Bearish Bets
Frontier Communications Corp. (FTR), a voice and data services company in Stamford,Connecticut, and Boise, Idaho-based chipmaker Micron Technology Inc. are among companies with the highest bearish bets. Their shares have soared more than 22 percent this year. A Goldman Sachs Group Inc. measure of the hedge fund’s biggest short holdings has risen 7.8 percent this year, compared with a 5.5 percent gain for the S&P 500.
More than $1.6 trillion has been added to American share values since the end of January amid accelerating economic growth and actions by central banks to stimulate the expansion. The S&P 500 advanced 1.3 percent to a record 1,949.44 last week as the European Central Bank cutinterest rates and U.S. unemployment stayed near a six-year low.
While the S&P 500 has rallied for 10 of the last 12 days and advanced each of the last four months, investors have been withdrawing money from the market. About $4 billion was pulled last month from the S&P 500 ETF, the world’s biggest with $164 billion in assets, data compiled by Bloomberg show. Funds that buy domestic shares have received $4.8 billion this year, compared with deposits of $25 billion in bonds.
in a few months the shorts will be handsomely rewarded.the usd is dead!!!!! the sheeple just haven’t been told,and they don’t know whether there should be new orleans style funeral or a d.c funeral.there is a reason why goldsuk sacks pumped liquidity into that south american country that wanted to “repatriate” there gold back to it’s country.because they are settling in cash,they don’t have the gold.go ask angela,she knows all to well,she has silently sided with the ruskies and the chinese.the pm’s can get slammed as much as the cabal wants to smash them,but if gold goes to 1k or less,and silver sinks to 12-15 like the squid claims,then all i will say is,try to find the metals at those prices………tic doc
Here is the funeral the world will have
http://www.youtube.com/watch?v=hnFERo0XNFw
that was funny.too bad that wasn’t photoshopped to the dude that has all those dollars stuck to him in those geico commercials.fuck i’ll even hand over a couple of ase’s to whoever does it,and post’s it on stocktwitts under drummer boy’s complete harvard economic anal isis of the century for the u.s.dollar……….fuck,even a caveman can do it.
hahaha