Monthly NYSE Short Interest
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Above is the latest monthly NYSE short interest figures. I stopped showing this graph for a while because the signal wasn't working, or I wasn't sure how to read it. Joseph Granville mentioned last summer that he thought the unbelievable surge in short interest was actually bearish towards stock prices, rather than a bullish contrary sentiment indicator. So this means up until spring 2007, when the short interest reached above 6 days, it indicated fear and was therefore bullish. This stopped working in the summer of 2007 when the days to cover reached above 7 days, and then it indicated there was a real problem developing. And of course the shorts and Joseph Granville turned out to be correct. Anyone with ideas about this graph and how to read short interest, please send me a note.
Jimmy C. (Comment this)