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Hedge funds capitulate, with data suggesting they are covering shorts on European stocks at the...

Hedge funds capitulate, with data suggesting they are covering shorts on European stocks at the fastest rate since the epic bottom of early 2009. Likely priced in on the bear side are faltering economies and shrinking corporate profits. Maybe priced in on the bull side are further supportive official actions.
Comments (3)
  • bbro
    , contributor
    Comments (9167) | Send Message
     
    Hint....follow the 2 year Euro swap spread...
    13 Aug 2012, 11:52 AM Reply Like
  • GaltMachine
    , contributor
    Comments (1129) | Send Message
     
    Not sure how anyone in their right mind can possibly be shorting a market that can turn on a dime with just a couple of well-chosen words, not actions mind you, from a central banker.

     

    I just think that the destruction of the shorts is going to lead to even greater instability in the long run and the potential for sharp crash without the support from shorts covering their positions on the downside.

     

    Add in short-selling bans and you really have to wonder about the basic premise of running a long/short fund. The only rationale is really the fees because the clients sure aren't benefiting from it.
    13 Aug 2012, 12:37 PM Reply Like
  • Brian Bobbitt
    , contributor
    Comments (1874) | Send Message
     
    Don't forget, lots of shorting is for hedging purposes.

     

    They have stopped shorting in Europe, so I wonder what TPTB will do for us here when the fan gets hit.

     

    Capt. Brian
    The Lost Navigator
    13 Aug 2012, 03:51 PM Reply Like
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