fxtrader07

Global Market Performance: Nowhere to Hide

good article with valid conclusions, but: the indices, more than ever hide the true picture. most stocks have lost way more from their highs than the averages suggest. if it were not for a few sectors like oil, gas, energy, certain ITs, agriculture and other commodity related stuff then the averages would have been down way, way more.
the point i want to make is that the downside in many individual stocks is rather limited from here (beyond panic-induced short-term spikes down), short interest is sky high for many stocks (even if accounting for a growing number of long-short funds) and the SEC's naked short regulations have achieved the well to be expected zero-effect so far with stocks being on the regshoe-list for many months experiencing ever higher short ratios - something that certainly is a clear sign of manipulation and no-enforcment of rules.
bottom line: at one point a lot of stocks will stop falling down and go up rather sharply, triggered in all likelihood by a drop in oil prices. which, in turn will bring the so far strong performing sectors sharply down, even if just temporarily. the effect will be a subdues rally in the indexes but a quite sharp one in certain sectors.