Short Interest by Sector: Consumer Discretionary Leads

As reported last week, short interest on the New York Stock Exchange rose to a record high last month to 14.4 billion shares. Looking at the S&P 500 and its ten sectors, we calculated the percentage of each stock's float that was sold short. For the S&P 500 as a whole, the average stock in the index has 5% of its float sold short.

Not surprisingly, the Consumer Discretionary and Financials have the highest percentage of their floats sold short (8.12% and 6.11% respectively). Sectors with the lowest short interest include Utilities and Industrials (3.10% and 3.27% respectively).

On an individual stock basis, below we highlight stocks in the S&P 500 with over 15% of their float sold short. Not surprisingly, the list is dominated by stocks in the Consumer Discretionary and Financial sectors. One name on the list where the shorts are having a very good day is Bear Stearns (BSC). The stock, which has 18.6% of its float sold short, is down over 10% today on liquidity concerns at the company.

Comments

[Short seller]

What's the point?

[PermaBull69]

Short squeeze aside, you'd have to be nuts to drop money long on these sectors until there's some kind of serious modulation. The short money guys are probably smart money majors taking the elevator down.

[Short seller]

You guys never stop amazing me. We all know the big banks (JP morgan and co.) are out to get the little guy. I hold over 400,000 shares and I did not flinch when it went down to $2.08. I know the Republican game. McCain is the kiss of death for this stock. Clinton or Obama will put things back into perspective. The CEO's are shitting in their pants at the thought of the average person making money in this market. SO, look up history, the
Democrats have put me in the position to hold 400,000 plus shares of this outstaning company. Sorry for the emotion, but this so reminds me of Reagan-omics.

[PermaBull69]

When what went down?

[Short seller]

You guys win... I'm crying uncle... so long etrade,, Sell , Sell , Sell. 12bl. in the hole the fed can't save us. booo booo hooo.

(Disclosure)The entire post was sarcasim.
This is how they want the average investor to think and they plan on continuing this non-sense. Buy us out at a bargain bottom basement sale... again you big boys ...I have a bridge too sell you in Bagdad.
Remember April fool's is right around the corner.

I remain Short guy

[Short seller]

PermaBull69Mar 10 07:56 PMWhen what went down?

My point exactly.. done with you ... next.

[kap770]

To Short Seller: I've been tracking what you have been saying from previous Seeking Alpha article 'ETrade-Foundation for Success'. I'm a new guy to the market and I only have 5000 shares of ETFC that I settled in a few weeks ago at $4.90. I thought for sure ETFC would fly and I'd sell at between 12 and 15. Dan Blue commented following the 'ETFC-Success' article that he thinks the company is up for immenent sale, and that ETFC brass is behind the scenes artificially keeping the stock price down to keep it attractive. The way the stock seems to be going, it seems like its going to be bought out at the 'bargain bottom basement' whether we like it or not. You mentioned above that 'McCain is the kiss of death for the stock'. As you saying that ETFC will survive into the elections? If so,what's your prediction on ETFC's future?

[Short seller]

Kap770 Hold on to this stock. It's one of the best out there. Let's here it for the FED!!!!!!!!!!!!!!!!!!!...

[Short seller]

The action by the fed today insures the survival of ETFC. Low risk - high return. No way in hell the reserve will let a household name company like e-trade go under. The jp's and company have been trying to sabotage this company for the last year. Liquidity will not be a problem and you can bet the Fed will expand on todays program. Too much at stake during this election and let's remember the world's financial systems revolve around the US of A, not the other way around. Buy out is still on the table and I stand by that, not that I endorse one, because I am very impressed with etrade's business model that so many others envy. This stock is way under valued.

[ps]

what do think about owning the preferred stock is that a good idea or bad and why

[Short seller]

February numbers should come out soon. This will be most indicative of the changes the company has made since we seen the change at the helm and a prelude to the buy-out. This will of course come in as an unsolicited bid. That's why we see the suppression of this stock. Every time we see an upward spike I notice a large block of sell shares popping and sitting for about 3 to 4 minutes and then pulled back, thus stopping the upward trend. I've been around awhile and it's becoming more blatant over time. It’s really starting to annoy me, especially when these knuckleheads come on hear spouting off on how terrible this stock is... if you ask me, most are paid too put the fear in stockholders and put out a desperate perception for any kind of buyout. Personally I as a shareholder am not impressed with the board throw a large amount of shares and options at the new CEO. I would have liked to see a more performance based contract, with goals and incentives attached. With corporate greed running rampant I think E-trade should have set the standard on all new CEO’s.
My two cents.

[Short seller]

We sure did not get the bounce we deserved, open 3.83, close 3.84.

[kap770]

To Short Seller: The Dow goes up 417 and ETFC goes up .01. What's wrong with this picture?! Given ETFC's high profile and low price, it seems certain that the stock is being suppressed - probably to ensure a quick sale. My concern is whether those suppressing the stock can push it down to 3 or under. Do we 'little guy' shareholders have any recourse tio further address / investigate this matter?

[danblue]

why is Etrade leadership silent is it because they are inept or because they are considering a buyout offer. I think first Etrade is negotiating a sale of its mortgage assets.

[Short seller]

I have already put a call into the SEC. I expect some action.

[Short seller]

Be patient...

[Short seller]

Bought an additional 25,000 common at 3.95. I hope all expand their positions. It's getting ready to pop.

[Short seller]

One more thing: SEC investigator confirmed that they would monitor any allegation of price suppression. Good enough for me.

[daffy]

Hey shortie . . . .

Your hypothesis is interesting. I too was just watching this etfc deal as I put a sell at 3.94. I will pick up in two days. I think the price will drop again before we break 4. But here is the deal, every time I saw the price come close to my call, I saw a blocks of 100K+ shares come up. WTF? Right now there is 100K shares on the block. I have never seen that with ETFC. Your right, there is price supression happening here.


In any case, don't worry about my sale, I am coming back in when it drops back down to 3.50-3.70 range. + I am still long on other shares.

I think yeserdays action was interesting in that ETFC didn't hardly even move. I thought for sure that ETFC would have bounced to well above 4 by today. In fact, my sell was for 4.17. The only reason I sold as I think it is going to go down either tomorrow or friday. Jan's readings were read on 2/13 so I expect Febs will be out this week.

I just think there will be another big sell off this week before any big news comes out.

I really think we should have seen a bigger bounce in ETFC yesterday. CFC went from 4.36 to 5.11. CFC. Yeah, that big monster in serious trouble. ETFC just has to get rid of some pesky little interest rate (12.5%) and do something about writedowns and it should bounce quickly back to 15$. Yesterday should have given that hope a reality check for the positive.

Something is amiss here.

[Short seller]

Don't see it coming back into the 3.5 scale or the 3.7.

[Short seller]

SEC called me and confirmed numerous complaints. I'm thinking of pulling out, I smell a RAT.

[kap770]

Short Seller: Explain your last comment . . .

[daffy]

It will get back to 3.70. Heck, it is at 3.76 right now.

Don't pull out too quick there short seller. Don't do anything rash.

WORST case scenario is that the price is being hammered to prepare for the Feb report which is bad so as shareholders don't see an amazing one day drop.

I am just going to keep a very keen eye on sales and and performance in the next few days. You are right, somethingis going on here, and I am going to stick it out but I do not have as much as you to loose.

Remember, the stock will bounce.

The stock will bounce.

Being rash is why the market takes bad turns, you know that and I know that. Go back and read my last comment on the other article, you now, the one where I talk about etfc and peers. I still believe that.

Think before you act here. Big money comes with some risk and sweat on the brow.

[daffy]

One more thing short,

look at the insider trades and the pricing in January. I think they were at 4.01 and 4.06 respectively.

I will look for the numbers and report.

[daffy]

Oooops, insider buys were about 500K shares at roughly 4.06.

On 462M shares, not exactly what I would call I big deal.

I thought it was more. My mistake.

I would be curious however to see what Laytons deal says. Did he get an upfront promise of big share stake? Don't have time to dig, anyone got that info?

[Short seller]

Sold all my Shares at total lost of 24.39%. I have to maintain my lifestyle.
Sorry, that I did not hold on , but the bastards that pushed me out are the ultimate victors. I refuse to go back to Reagan-omics. The writing on the wall is there for the buy-out and I conceded to my stop that I placed several months ago. Good luck too all.

I remain,
Shorter that I was three months ago.

[Short seller]

Btw: A bad report is being let out The sub-prime issue and dropping property values are going too hit hard. On Thursday right after the opening bell the crap report is being released. I would sell now if you are planning on going long.
I cut off the arm to stop the bleeding.

I remain,
Shorter that I was three months ago.

[Short seller]

Bwahahahahaha, 2cents down since I posted that. Come on people, get real and look at the value of this stock. I was playing Devil's advocate. Do you all see my point? Stop being such cry babies and hold on to this stock! The push down is just a test of loyalness. If you look at my post on TMA yesturday I predicted numerous up grades today and it came to fruition. Stay the course, daffy I was just spoofing your cal for ETFC to Hit $3.50.

[Short seller]

Tuesday at 5:00 pm. Reponse to all the nay-sayers:

That move by the Fed. saved Thornburg from a hostile take over and pulled them from the ashes. Thornburgs own wealth is on the line and I'm sure he'll do what ever it takes to get this stock back where it belongs. I anticipate a few ungrades on hump day with the announcement of TMA metting their obligations. Good job Fed. keep it up!

At the Time of the post $1.56

Closed at $2.88
After hours currently $ 2.93

Now all you people stop with the panic selling!

it's getting old, including you Daffy.

[daffy]

That wasn't a panic sell . . .

that was a well thought out play.

OK, now that I am getting old . . . I am going to get back to buying here in the morning.

[kap770]

Short Seller: . . .aahhhh . . . Does this mean you don't smell a RAT?

[Short seller]

Does this mean you don't smell a RAT? yeap

Just a little sub-prime mess round two hitting right now it's a mess. This company's former ceo did a great disservice to it's shareholders, a solid company that invested into sub-primes will be the final nail in the coffin. I hate to admit it but cramer seems to be right on this call.

This is my last post regarding E-trade.

[kap770]

Short Seller: Sorry to see you go. I appreciated your insights. But maybe Daffy has the right idea. . . Sell off the top and come back on the bottom. This way the price of the position keeps coming down.
As you said, the Fed can't afford to let ET just collapse and go under. There has to be a buyer in the wings. The only question I have is when this sale will happen.

[Hoot85]

Closed at 4.20 a share....bounce or? I don't know what to make of this. For the past month and a half it couldn't break 4 bucks a share, now it jumps 8.81% in a day. Some insight please.