S&P 500 Short Interest Still Rising

Yesterday's release of short interest figures for the Nasdaq confirmed the increases we saw last week in the NYSE.  Updating our figures for S&P 500 short interest shows that the average stock currently has 5.8% of its free float sold short.  While part of the rise can be attributed to hedge funds and the increased popularity of long/short mutual funds, at least some is attributable to negative investor sentiment.

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Comments

[CLH:]

This only shows that most of the investors are wrong.

2008 Jun 25 10:54 AM

[winslow:]

should this be construed as a positive development?

2008 Jun 25 04:08 PM

[monday1929:]

No, high short interest occured before the 1929 crash and several other large declines. It is not a good contrary indicator.

2008 Jun 25 04:42 PM

[mark mchugh:]

I really admire how you guys compile stats and refrain from saying too much about what it might mean. It's refreshing.

Thanks

2008 Jun 25 09:07 PM