BOTTOM LINE: The Portfolio is slightly higher into the final hour on gains in my Computer longs, Medical longs and Networking longs. I have not traded today, thus leaving the Portfolio 100% net long. The tone of the market is slightly positive today as the advance/decline line is about even, most sectors are rising and volume is above-average. My intraday gauge of investor angst is around average levels. The NYSE reported late last week that short interest on the exchange, from mid-June through mid-July, rose from 12.47 billion shares to 12.95 billion shares, which is yet another all-time high. Moreover, the 3.9% increase leaves NYSE short interest up an astounding 35% since mid-February, the largest five-month percentage jump since at least 1991, when Bloomberg began tracking. This is even more shocking considering the S&P 500 jumped another 7.3% during that period and the DJIA was breaking records on its way to 14,000. It is also noteworthy that odd-lot short sales spiked into Friday's sell-off to levels exceeding those seen during the peak in sub-prime fears in March. This is just more evidence, in my opinion, that the many bears continue to party like it's 2000-2003, despite the S&P 500's 109% gain from that period's lows. NYSE short interest was basically flat from mid-2002 through first quarter 2005, which is what I would expect considering the extraordinary number of new hedge funds created during that period and a large stock rally off the bottom in October 2002. The recent parabolic rise in short interest is stunning, however, and is symptomatic of the current “
Here are the 25 NYSE stocks with the largest percentage increase in their short interest relative to their float from mid-June through mid-July:
1. Beazer Homes (BZH) +18.2%
2. Fortress Investment Group (FIG) +16.5%
3. Hovnanian (HOV) +13.8%
4. Titanium Metals (TIE) +13.8%
5. KBW Incorporated (KBW) +12.7%
6. Talbots (TLB) +11.9%
7. Primus Guaranty (PRS) +11.3%
8. Assured Guaranty (AGO) +11.1%
9.
10. Novastar Financial (NFI) +10.8%
11. Emergency Medical Services (
12. MVC Capital (MVC) +10.0%
13. Citadel Broadcasting (CDL) +9.7%
14. AZZ Incorporated (AZZ) +9.3%
15. General Maritime (GMR) +9.2%
16. Valhi (VHI) +9.2%
17. TriMas (TRS) +8.4%
18. Cal Dive International (DVR) +8.3%
19. Skilled Healthcare Group (SKH) +8.2%
20. Alesco Financial (AFN) +8.0%
21. Grubb & Ellis (GBE) +7.85%
22. Genco Shipping & Trading (GNK) +7.7%
23. RSC Holdings (RRR) +7.6%
24. Best Buy (BBY) +7.5%
25. Meritage Homes (MTH) +7.5%
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