Monday, July 16, 2012

IS AN ADVANCE TO CONFOUND BEARS IMMINENT?

"Short sales on the New York Stock Exchange have climbed above last September's peak, a level that preceded a five-month rally and heralded losses for bears.
Shares borrowed and sold reached 5.35 percent of stock available for trading last month, according to data compiled byNYSE Euronext. (NYX) That eclipses 5.28 percent on Sept. 15, when bearish bets peaked last year and the 25 most-shorted companies in the Standard & Poor's 500 Index (SPX) began a 21 percent advance, data compiled by Bloomberg show. "
http://finance.yahoo.com/news/short-sales-nyse-top-2011-135810129.html

I had left door open for an advance to SPX 1400-1450, at prior 2 tops 2000 and 2007 certainly short sales were not overwhleming, still many thought only blue skies. Short covering if they get pushed and held by weaker hands could cause a smart rally to form. The lower level of support so far has held, low volume......anything is on the table.

D

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