Short interest is at it's LOWEST level since before the crash in 2oo8. Margin interest is at it's highest level since before the crash. Both of these things suggest a severe correction is coming at some point. There is always short interest, especially in certain stocks (think solar), but the levels now are the lowest in 5 years. But market just set all time highs in Dow, Nasdaq, & S&P, so naturally, shorts are squeezed.
Correct. There have been numerous articles lately about the low short interest, high margin interest, both contrary indicators. We haven't seen these levels since 2007, right before the crash. When everyone's bullish, that means they are already invested. When everyone's invested, the only way to go is down. It's coming, just a matter of when. I lost a fortune in 2008 crash, hence my aversion to holding stocks long. I once had a large diversified portfolio. No more. Never again do I want to go through that.