Bespoke Invest blog has the list of stocks in the S&P 500 with at least 25% of their shares sold short. Interestingly, in a ‘flattish’ market for 2011, these named have declined on average by a quarter of their value. Only 5 are positive for the year. Of course, that is not to infer investors made all those gains – many people (hand raised) like to jump on weak stocks. Usually a body in motion, remains in motion.
Speaking of bears, Bespoke also reports that the AAII bear reading is at the lowest levels since January. Remarkable considering the events in Europe – I guess moral hazard is now built in every fiber of our souls. “They’ll come to the rescue – they always do”