Frustration index and june S&P 500 largest short positions
- Posted by Marc on July 12th, 2008 filed in Outlook
frustration index: days when the stock market goes up one day and the next day falls more (1940-2008)
Bespoke investments provide us with highly relevant information about current market situation. The first figure is very curious. This is the statistical analysis of historical periods in the American stock market that, after a day hike or climb stock, the next day not only falls on stock index, but the fall is greater than the percentage rise in the previous day. This phenomenon has occurred 15 times in the past 50 days ¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡¡
This is a very rare phenomenon. Is unnatural or contrary to human psychology find some cheap shares today and expensive the next day. The market tends to follow trends at least several days or weeks.
List of largest short interests in June 2008 (source Bespoke Investments)
Again the department stores company Sears Holding (SHLD) has largest short positions with 53% of free float. It also appears in the top rankings real estate sector shares (KBH, LEN or CTX) as in May.
There are only one surprise, pharmaceutical Mylan Laboratories (MYL), a specialist in generic drugs, suffers nearly 24% of its free float in short positions.
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