What i never hear about is the failure to mention that the record short interest is all on credit......perhaps some feel that despite the fact that 32% of the Nazdaq has disappeared since end of month march 01, (4947 companies in March 01 versus 3329 companies ) perhaps your sure it does not matter...? Perhaps you who have been trading indexes and proxies, dont concern yourself with the possibility that good companies surround you, and smart money is finding them.
Margin represents the great distortion, because 100% of Short open interest is carried there.
I have a real sense that those who are railing most about the credit bubble cant count. The liability on the short side against a falling market float is the real record, no one is talking about. Perhaps they feel the fix is in....Meanwhile i am certain that Longs are at record low margin, this indicates an awareness that, " meet them at the window metrics" work very well in the world as we have come to know it.
Perhaps those chiding everyone about the credit squeeze in sub prime are unaware of the compounding contract they have entered into on the short side?
Record naked shorts are only a part of this markets problem, increasing $, declining supply, trade interests must be counting on a big fracture event........whatever they do, this is certain, they will do it in stages as the market is functioning like a cartoon, the systemic belief in the absolute lack of awareness of investors understanding the unfolding scheme; is pure hubris.
Stalk the system because the system is stalking you.
There is no supply accept what is issued to a trading purpose.
You already know that price is the artifact.......let the show unfold, operate like a hunter, contribute nothing, then.....fractional deconstruction from equivalent lows......you control your yield after that.
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