Market “Paralysis” Confirmed – Squeezed Shorts And Anxious Longs Are Fleeing Stocks

Saturday, July 22, 2017
By Paul Martin

by Tyler Durden
ZeroHedge.com
Jul 22, 2017

For the last two years, short interest in the US stock market’s largest ETF has collapsed as bears have been squeezed back to their lowest level of negativity since Q2 2007 (the prior peak in the S&P). But, there’s a bigger issue – despite record highs and ‘no brainer’ dip-buying, anxious longs have dumped S&P ETF holdings for four straight months – the longest streak since 2009 – seemingly confirming Canaccord’s recent finding that “it’s not complacency, it’s paralysis.”

Bearish investors say they are scaling back on these bets not because their view of the market has fundamentally changed, but because it is difficult to stick to a money-losing strategy when it seems stocks can only go up.

“There seems to be an overall view that people are invincible, that things will always go up, that there are no risks and no matter what goes on, no matter what foolishness is in play, people don’t care,” said Marc Cohodes, whose hedge fund focused on shorting stocks closed in 2008.

The Rest…HERE

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