Australian Investment Blog

Short selling at record highs in the U.S Good Morning everyone Overview U.S Markets were up overnight, +112pts on the DOW, and +1.05% on the S&P 500. Futures here are tipping an + 18pt rally which comes on the back of a +21pt move higher yesterday – the ASX 200 now sits at 4945. The U.S market still looks strong – that’s fairly obvious to see. At Market Matters, we think there are obvious risks over the next month or so around U.S reporting as we’ve detailed recently. One of the other obvious trends in the U.S is the magnitude of short interest in stocks. Recent reports suggest that short interest is around $1 trillion – and is now at the highest level since (pre-GFC). More than 4.3% of the S&P is currently short sold. This is actually a bullish short term sign and may be one reason why the U.S has stayed very resilient in the face of obvious headwinds. If there are significant amount of shorts outstanding – and they’ve been increasing over time, it means a couple of things;