ETF Short Selling
I love the smell of shorts in the morning!
Toddo - Re: your Mailbag of 8:33 am yesterday:
Short selling in the QQQQ and the DIA is relatively light, while short selling in the SPY is more substantial (that's bullish, in our opinion.)
It's been my observation that short selling in the ETFs do not necessarily match short activity in overall common stocks, however there were a lot of "insurance" bets in the 2003 advance.
The market has been unable to make further highs following the apparent capitulation of the QQQQ and DIA shorts at the end of 2004. The idea that use of short selling as a hedge is not an expression of sentiment doesn't wash. True, a hedged position is less volatile than naked short selling, but nobody hedges their long positions if they think the market is a bull.
The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.
Copyright 2011 Minyanville Media, Inc. All Rights Reserved.
Daily Recap Newsletter