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Short interest climbs again

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Yo Boo! You're stepping on my tail!

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Short interest for the period between mid-March and mid-April rose slightly on both exchanges. Short interest on both exchanges again set new records (last month was the old record). This bearishness is confirmed by surveys of individual and institutional investors showing increasing bearishness in the market. If you are a true contrarian, there can be no denying that Boo's camp is the crowded trade.

The graph I've been using appears below. It uses January 2003 as an index year (for no reason than that was a complete year bull market and the first year where I collected data).

Short interest in the IBB, the iShare ETF for the NASDAQ Biotech Index (NBI), dropped 23.99% to 9.9M shares last month. Last month, short interest in the IBB was up 82.17% to 13.1M shares. The BBH, a HOLDr ETF approximating the AMEX Biotech Index, saw short interest drop 1.11%. I figured it would be the other way around given the outperformance of Genentech (DNA).

Finally, the short interest on the 159 stocks in the NBI represents 11.46% of the total short interest on the NASDAQ. This is slightly down from last month's 11.53%. Total short interest for all NBI stocks decreased slghtly.

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No positions in stocks mentioned.

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