Submitted by Lance Roberts via RealInvestmentAdvice.com,
Commercial bankruptcies are skyrocketing, oil prices have collapsed, profits have declined and Central Banks globally are pushing negative interest rates in hopes of keeping economies afloat. At any other point in history, such a combination of events would have investors scrambling for cover as market prices fell.
The "most shorted" stocks have fallen for 6 of the last 7 days, dropping almost 6% - the biggest in 3 months - as the S&P 500 fell just 1%.
Year-to-date, 'shorts' are outperforming with "most shorted" down 3.3% compared to the broad market's unchanged return.
As Credit Suisse noted, short squeeze pain appears to be abating... 3 data points suggest shorts are re-establishing themselves:
The overnight session has been one of alternative weakness and strength: it started in China where stocks tumbled 2.8% to a two month low following an unexpected warning in the official People's Daily mouthpiece that debt and NPLs are too high, not to expect more easing will come, and that the Chinese Economy’s performance won’t be U- or V-shaped but L-shaped.
Submitted by John Rubino via DollarCollapse.com,
Something happened this week that has never happened before. While outflows from equity ETFs soared, the $3.6 billion redemptions from high yield bond ETF HYG this last few days is the largest ever - almost twice as big as the previous largest outflows (seen in May last year).
The last week saw the biggest outflows from the high-yield bond ETF (HYG) ever...