HeadlineCharts.blog.com

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Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged.  | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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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.

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Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged.  | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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NYSE short interest started hitting eye-popping highs in June and July accurately predicting a problem in the equity market well before the eventual dramatic sell off.  Usually high short interest is a bullish sign of investor fear and is favorable towards stocks from a contrarian point of view.  But last summer it pointed to a problem.  The chart above shows that short interest has now shot well past the prior highs of the summer.  I'm not sure what to think, but one thing is for certain, there are definitely a lot of investors nervous about the market.

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Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged.  | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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Short interest has shot right back up to prior highs...  The bearish shorts were right about the market in July, but generally high levels of short interest is a bullish sign from contrary sentiment point of view.  I'm not sure what to think.

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Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged.  | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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NYSE short interest rose to 8.4 days to cover which is well above the prior peaks.  Ordinarily, the peaks in the market correspond with the lows of short interest.  But now each new high in the market brings new highs in short interest. 

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Disclaimer: All charts and comments are intended for education and discussion purposes only. No investment recommendations are being offered. Please do your own research and take responsibility for all investment decisions that you make. Questions and comments related to this post are encouraged.  | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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NYSE short interest continues to reach record levels as investors continue to bet against the stock market.  Evaluated from a contrarian point of view, this is very bullish for the market.

All charts and comments intended for education and discussion purposes only. No investment recommendations are being offered. Comments below related to this post are encouraged. | MON - Sector Strength | TUE - Interest Rates | WED - Market Breadth | THU - Commodities & Currencies | FRI - Market Sentiment | SAT - Bullish Percents | About | contact: HeadlineCharts@gmail.com |

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The NYSE Short Interest is at its highest level in years, which indicates a very high level of investor fear.  Investors are clearly aniticpating that the market will decline, and therefore NYSE short interest is favorable towards equities from a contrarian sentiment point of view.