« Stocks With the Most Up Days in December | Main | 'Tis the Season to Be Bullish »

Short Interest Declines to Lowest Levels Since 2007

Short interest levels for the middle of December were released yesterday and showed that short sellers haven't been this gun shy since 2007.  The chart below shows the average short interest as a percentage of float (SIPF) for stocks in the S&P 500.  At a current level of 4.15%, the average SIPF hasn't been this low since December 2007.  

While the decline in short interest levels is indicative of the market returning to its more normal footing from the chaos of the credit crisis, the question that bulls need to answer is that with an increasing number of short sellers moving to the sidelines, or even the bullish side, is there anyone left to convince?

Subscribe to Bespoke Premium and receive actionable advice on topics across the trading spectrum!

Reader Comments (1)

That is exactly what is scaring me into keeping some cash on the sidelines.

December 29, 2010 | Unregistered CommenterCoach Kevin

PostPost a New Comment

Enter your information below to add a new comment.

My response is on my own website »
Author Email (optional):
Author URL (optional):
Some HTML allowed: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <code> <em> <i> <strike> <strong>