Short-Sellers in Short Supply

I've said before that I think one of the reasons why we had such a strong post-invasion rally last year is that we were able to climb on the backs of the short-sellers who stayed persistently negative despite the bullish tape. When the short-sellers finally threw in the towel last January, it marked the end of that rally.

Why am I talking about this now? There are a number of new reports and data to confirm that short-sellers have been pulling off their bets recently in fear of a strong 4Q rally. This confirms that people are not just bullish, but they are also putting their money where their mouths are and that those who are bearish are giving up on their positions. In my view, this is not a very bullish sign for the stock market. READ