Posts filed under “Short Selling”

Smart Money Gets Massively Short NDX


While bullish sentiment towards the equity market has rebounded sharply since the end of August, at least one group of traders is not feeling the love, especially when it comes to technology-related shares.

Based on recent data from the Commodity Futures Trading Commission, commercial traders (i.e., defined by the CFTC as those who manage their business risks by hedging in futures and options) now have their biggest net-short position in NASDAQ-100 futures in recent memory.

As the follow chart (courtesy of SentimenTrader) shows, the “smart money’s” track record when it comes to identifying tradeable short-term trend reversals is not too shabby.

Combine that with the fact that many hedge funds have major exposure to technology darlings like Google, Microsoft, and Apple — according to Goldman Sachs, the latter is a top 10 holding of 75 funds — and one could argue that you have the makings for a nice little rout.

I guess we’ll soon find out.

Category: Psychology, Short Selling, Technical Analysis, Think Tank

BNN: China Yuan Discussion, RIMM

BNN speaks to Diane Brady. senior editor, Bloomberg BusinessWeek, and Barry Ritholtz, CE and director of equity research, Fusion IQ.


Did I just smoke a fattie? I don’t recall . . .

Click for video

Headline : September 16, 2010 : Panel – Part One [09-16-10 12:15 PM]


This looks better (sober). . .

Click for video

Headline : September 16, 2010 : Panel – Part Two [09-16-10 12:25 PM]

BNN speaks to Diane Brady. senior editor, Bloomberg BusinessWeek, and Barry Ritholtz, CEO and director of equity research, Fusion IQ.

Category: Media, Short Selling, Technology, Video

Beware Leveraged ETF Slippage

Good article from Bob O’Brien in Barron’s warning about the dangers of 2X Short funds: Beware of Leveraged Short ETFs. Its not just the short leveraged ETFs, its all of the leveraged ETFs that have the same slippage characteristic over time. As anyone who has ever traded them can tell you, they fail to track…Read More

Category: ETFs, Short Selling, Trading

Home Builders Sell Signals

I was just discussing how ugly the Home builders look with AJ, one of our institutional sales traders.

Nearly every builder has been on a SELL SIGNAL in the Fusion IQ ranking system for several weeks now. These names are down 20 to 35% over that time.

AJ has been flashing TOL to various institutional clients as a possible short, but all of the builders — DHI, KBH, LEN, PLT — look pretty punk.

Considering we are now in the early stages of a second leg down in Housing, plus the excess new and shadow inventory that is out there, its hard to consider anything other than selling these names. Clients who are short have been advised not to cover yet.


Residential Construction Member Names and Rankings

click for larger charts


D.R. Horton (DHI)

Other Homebuilders’ charts after the jump . . .

Read More

Category: Quantitative, Real Estate, Short Selling, Trading

Chanos Shorts Oil Majors, Ford, Hasn’t ‘Played’ BP

Hedge fund manager Jim Chanos, founder of Kynikos Associates Ltd., spoke with Bloomberg Television’s Erik Schatzker for a special that will air on “For the Record” next Friday, 6/25. Chanos talks for the first time about his new short positions since he went public with his bet against Chinese property in January 2010.


Transcript after jump

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Category: Short Selling, Video

Congress: Insider Trading For Lawmakers OK

This is simple to resolve: All Congressional trades should be reported within 30 days. Problem solved.

Category: Politics, Short Selling, Video

Cash = 100%

In light of this Wednesday morning’s commentary, a few emailers asked me were we stood after today’s action. The short answer: We are now all cash. We have no positions long or short. We are actively looking for shorts. I will post an update when we make a serious change in our tilt. ~~~ UPDATE: …Read More

Category: Short Selling, Trading

Congress: Shorting America?

> Source: Congress Members Bet on Fall in Stocks JASON ZWEIG, TOM MCGINTY And BRODY MULLINS

Category: Politics, Short Selling

Ackman, Chanos on Short Selling

William Ackman, managing partner of Pershing Square Capital Management, discusses the benefits of short-selling, Goldman Sachs’ fraud charges and more with CNBC.

Airtime: Tues. Apr. 27 2010 | 7:10 AM ET


Short selling is a key focus of the Goldman Sachs hearing Tuesday on Capitol Hill. James Chanos, of Kynikos Associates, and Bill Ackman, of Pershing Square Capital, share their insights.

Airtime: Tues. Apr. 27 2010 | 8:05 AM ET

Hedge fund manager Bill Ackman shares his parting shots with CNBC.

Airtime: Tues. Apr. 27 2010 | 8:54 AM ET

Category: Short Selling, Video

Exonerating the Shorts

Interesting discussion by the always worth reading Mark Hulbert about a recent research paper on Short Selling. While I agree with the paper’s conclusion, it overlooks two major related issues regarding short selling. Let’s look at a few excerpts first: “Short-selling became particularly controversial during the recent bear market, when many of its practitioners turned…Read More

Category: Research, Short Selling