Excerpt from our Wall Street Breakfast, a one-page summary of this morning's key market-moving and stock-moving stories:
Summary: Short positions rose to an all-time high on the Nasdaq, reaching a total number of 7.41 billion shares - up from 7.35 billion shares during the previous month, a rise of 0.8%. The Nasdaq's short ratio, or the average number of days it would take to cover the outstanding short positions, fell to 3.73 days from 4.36 days in September. Despite a run-up in prices over the last few months, the continued increase in short activity is an indication that the level of bearishness continues to rise, along with the market. The rise greatly outpaced the 0.1% increase in short interest at the NYSE, which also recently reported that short positions reached record highs in the October period.
Related links: Record Short Interest Pushing Market Higher • A Closer Look at the ProShares Inverse ETFs • Shorts, Rejoice: Double-Inverse ETFs To Begin Trading Thursday • New ProFunds ETFs: Awaiting the Leveraged Short Ones • Bearish Bets On the Nasdaq Reach a Record [WSJ] • Nasdaq Short Reports [Nasdaq.com]
Potentially impacted stocks and ETFs: NASDAQ 100 Trust Shares (QQQQ), Short QQQ ProShares (NYSEARCA:PSQ), Ultra QQQ ProShares (NYSEARCA:QLD), UltraShort QQQ ProShares (NYSEARCA:QID)
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