Oct. ETF Short Report: TLT Shorts Jump 17%

IndexUniverse.com

Short-sellers turned up the heat on long-dated U.S. Treasurys last month, when prices of equities themselves pulled back amid concern about the eurozone debt crisis and economic data that was looking weaker than it had earlier in the year.

The fact that short interest on the iShares Barclays 20+ Year Treasury Bond Fund (TLT) jumped more than 17 percent last month suggests that some investors might be looking past weak stocks and focusing instead on how a reacceleration of growth might put upward pressure on long-term bond yields. In September, shorts on TLT dipped 11.5 percent, according to data compiled by IndexUniverse.

The Federal Reserve, through various policy initiatives, has vowed to keep official interest rates and long-term bond yields low to help encourage borrowing, and thus, economic activity. But concern continues to course through the bond market that all the central bank’s easy-money policies are creating big risks of inflationary pressure. The jump in TLT shorts tells that tale to some extent.

Among other noteworthy changes in short interest was the nearly 40 percent jump in the number of shares of the PowerShares QQQ Trust (QQQ), after a 2.5 percent increase in September .

Additionally, short interest in the CurrencyShares Euro ETF (FXE) rose 5 percent last month, after rising more than 15.5 percent in September.

That’s consistent with some of the renewed concern about the ability of southern European countries like Greece and Spain being able to continue to work their ways out of serious debt at a time when austerity measures are carrying the day.

Separately, the shares short in the SPDR Retail ETF (XRT), the poster child of excessive shorting in the ETF market , dropped almost 18 percent in October, after declining 14 percent in September.

XRT’s short interest relative to the outstanding long float—at just over 250 percent at the end of last month—has been steadily, if unevenly, moving lower in the past year. That number was as high as 600 percent in the summer of 2011.

Caveats

It’s important to remember that short interest data are buggy, and flawed, as IndexUniverse Director of Research Dave Nadig likes to say.

For example, because of double-counting issues, it’s possible to have more reported short shares than actually exist in the market.

That said, looking at the short data is still a decent way to gauge market sentiment.

Big Bets
Ticker Name % Float Short 1 Month % Change $Short ($, M)
SPY SPDR S'P 500 27.34 2.99 29,811.29
IWM iShares Russell 2000 75.27 3.01 12,544.19
QQQ PowerShares QQQ 12.62 39.63 3,870.83
GLD SPDR Gold 4.23 3.01 3,124.51
XLE Energy Select SPDR 41.33 2.30 2,991.85
EEM iShares MSCI Emerging Markets 6.07 0.80 2,312.87
TLT iShares Barclays 20+ Year Treasury Bond 64.27 17.33 1,966.37
IYR iShares Dow Jones U.S. Real Estate 33.56 -0.74 1,704.19
XRT SPDR S'P Retail 256.25 -17.83 1,548.76
DIA SPDR Dow Jones Industrial Average Trust 14.28 13.96 1,473.03

 

Really Really Short
Ticker Name % Float Short 1 Month % Change $Short ($, M)
XRT SPDR S'P Retail 256.25 -17.83 1,548.76
RTH Market Vectors Retail 252.10 3.45 41.79
FXE CurrencyShares Euro 220.95 5.06 582.94
XOP SPDR S'P Oil ' Gas Exploration ' Production 186.89 13.46 1,452.12
FXY CurrencyShares Japanese Yen Trust 182.14 -1.04 235.12
RKH Market Vectors Bank and Brokerage 150.97 -0.58 34.64
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX 102.11 4,528.92 1.51
KRE SPDR S'P Regional Banking 80.88 54.73 975.22
IWM iShares Russell 2000 75.27 3.01 12,544.19
VZZB iPath Long Enhanced S'P 500 VIX Mid-Term Futures ETN (II) 70.46 -1.84 0.56

 

Squeezable
Ticker Name Short Interest Ratio 1 Month % Change $Short ($, M)
RKH Market Vectors Bank and Brokerage 150.97 -0.58 34.64
FDTS First Trust Developed Markets ex-US Small Cap AlphaDEX 102.11 4,528.92 1.51
KCE SPDR S'P Capital Markets 32.45 -4.22 5.86
DRGS RBS Global Big Pharma ETN 11.61 -1.90 0.55
JJU iPath Dow Jones-UBS Aluminum Total Return ETN 11.24 -1.81 0.36
BUNT PowerShares DB 3X German Bund Futures ETN 6.87 115.91 2.92
UINF ProShares UltraPro 10 Year TIPS/TSY Spread 6.64 -2.92 0.27
TAGS Teucrium Agricultural 2.24 14.61 0.06
BNPC STREAM S'P Dynamic Roll Global Commodities 1.44 5.89 0.24
TRSY PIMCO Broad U.S. Treasury 0.47 140.69 0.09

 

Data is believed to be accurate; however, transient market data is often subject to subsequent revision and correction by the exchanges.

Permalink | ' Copyright 2012 IndexUniverse LLC. All rights reserved

Rates

View Comments (0)

Recommended for You

  • Tycoon buys 30 Rolls-Royces for Macau hotel

    A Hong Kong tycoon has placed the biggest ever order for Rolls-Royce cars, agreeing to buy 30 Phantoms to chauffeur guests at a luxury resort he's building in the global gambling capital of Macau. Stephen Hung's $20 million purchase surpasses the 14 Phantoms bought by Hong Kong's Peninsula Hotel in…

    Associated Press
  • Tired of Living Paycheck to Paycheck?

    New website reveals how to save $1,000's when you're living paycheck to paycheck. See exactly how.

    AdChoices Media ForceSponsored
  • Tycoon's arrest sends shock wave through Russia

    Tycoon's arrest sends shock wave through Russia MOSCOW (AP) — The arrest of a Russian telecoms and oil tycoon has sent shock waves through the country's business community, with some fearing a return to the dark days of a decade ago, when the Kremlin asserted its power by imprisoning the country's…

    Associated Press
  • Before You Buy Alibaba, Check Out 4 Top China Stocks

    Before You Buy Alibaba, Check Out 4 Top China Stocks While investors gear up for Alibaba Group 's (BABA) hotly anticipated initial public offering, don't forget about other Chinese stocks that are worth keeping an eye on. Today's Young Guns Screen of

    Investor's Business Daily
  • As Fed takes baby steps, Cramer's trick for profit

    In turn, Cramer says making money in the market, involves looking at the environment through the lens of the Fed. "The trick is to remember that they speak for the common person," Cramer said. "The Fed wants the common person to make money." With that backdrop always in mind, Cramer says it becomes…

    CNBC
  • "The Retiree Next Door": How successful retirees stretch their savings

    "The Retiree Next Door": How successful retirees stretch their savingsBy the time she hit her late 40s, Toni Eugenia wasn’t sure she would ever be able to retire. Eugenia, 56, a pharmacy technician who lived in Houston, was nearly $200,000 in debt and

    Yahoo Finance
  • CNBC Anchor Calls Out Fed-Hater Bill Fleckenstein In Startling Shouting Match

    CNBC Bill Fleckenstein of Fleckenstein Capital appeared on CNBC's Futures Now program on Tuesday. Futures Now host Jackie DeAngelis came out swinging, asking Fleckenstein right at the top if he was willing to admit that he had misunderstood monetary policy. Sounding taken aback, Fleckenstein…

    Business Insider
  • Beanie Babies creator's sentence debated in court

    Beanie Babies creator's sentence debated in court CHICAGO (AP) — Federal prosecutors seeking to put the billionaire creator of Beanie Babies in prison for hiding millions in Swiss bank accounts told appellate court judges Wednesday that the toymaker's sentence of probation threatens to erode the…

    Associated Press
  • Best Wrinkle Creams 2014

    Mom reveals simple wrinkle solution that has researchers very excited. Try this free solution today to look and feel years younger.

    AdChoicesBellaLabs.comSponsored
  • Apple to unveil new iPads, operating system on Oct. 21 : report

    The company plans to unveil the sixth generation of its iPad and the third edition of the iPad mini, as well as its operating system OS X Yosemite, which has undergone a complete visual overhaul, the Internet news website said. Trudy Muller, a spokeswoman for Apple, declined to comment. The iPad is…

    Reuters
  • Margaritaville casino owners seek bankruptcy

    The owner of Biloxi's Margaritaville casino has filed for Chapter 11 bankruptcy protection Tuesday, only hours before a hearing where the landlord aimed to seize the property. The filing by MVB Holding LLC in U.S. Don Dornan, a lawyer for landlord Clay Point LLC, said the company had planned to ask…

    Associated Press
  • Play

    Citi, Bank of America Offer Discounted Mortgages

    Citigroup and Bank of America will offer mortgages at discounted interest rates to help borrowers with low incomes or subprime credit. AnnaMaria Andriotis joins MoneyBeat. Photo: Getty.

    WSJ Live
  • Gilead Stock Is Falling On These Drug Setbacks

    Gilead Stock Is Falling On These Drug Setbacks Gilead Sciences (GILD) shares are backsliding Wednesday on news that the patient drop-out rate for hepatitis C drug Sovaldi is quadruple that of clinical trials. In addition, the biotech's Phase 2 study results

    Investor's Business Daily
  • Embraer to sell 50 E-175 jets to Republic in $2.1 billion deal

    Brazil's Embraer SA, the world's third largest commercial planemaker, said on Wednesday it booked a firm order from U.S. The deal, which will be included in Embraer's order book for the third quarter, is valued at $2.1 billion, the planemaker said in a securities filing. The planes will be operated…

    Reuters
  • Here's What Mark Cuban Wishes He Knew About Money In His 20s

    Cuban is the owner of the Dallas Mavericks basketball team. Billionaire investor and entrepreneur Mark Cuban is generous with his advice. When we asked him what he wishes he'd known about money in his 20s, he said:

    Business Insider
  • Mortgage Rates Hit 3.00% APR (5/1 ARM)

    $225,000 for $949/month. No points. No obligation. Get multiple mortgage offers in minutes. Can't hurt to look. Rate quotes are Free!

    AdChoicesLendingTreeSponsored
  • Play

    What the Fed Meeting Means for Bonds

    Janet Yellen & Co. are expected to hint at their timetable for raising interest rates. Here's how investors should prepare ahead of the meeting.

    WSJ Live
  • SHOE COMPANY: Our CEO Just Disappeared And Most Of The Money Is Gone

    "and like that: he's gone." This is an actual headline from a company press release: "CEO and COO disappeared, most of the company's cash missing." (Via FastFT) In a statement, German-based shoe company Ultrasonic said its CFO,  Chi Kwong Clifford Chan, has been unable to reach the company's CEO,…

    Business Insider
  • Billionaire Investor Says Chinese People Work Harder And Western Companies Could Face Deep Trouble After Alibaba IPO

    Michael Moritz, the chairman of VC firm Sequoia Capital, is a huge fan of Chinese internet companies and reiterated his enthusiasm for the Chinese market in an interview with The Wall Street Journal Wednesday. The billionaire investor described the Alibaba IPO as a “major landmark event” that is as…

    Business Insider
  • Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More

    Top Analyst Upgrades and Downgrades: AEP, BHP, GE, Incyte, 3M, Tyco, Under Armour and More Stocks were firm on Wednesday morning ahead of the FOMC meeting outcome. Tuesday’s rally may have sparked higher interest again, and investors are looking for bargains

    24/7 Wall St.
  • 6 Things Debt Collectors Wish You Knew

    The work debt collectors do is not popular, and has become increasingly derided by those who don’t like what we do or simply don’t know the facts about debt collection. Too often, debt collection is painted with a broad brush to create a portrait that isn’t accurate, and doesn’t properly educate…

    Credit.com
  • Boeing may have outfoxed Musk, but it could have bigger problems

    Elon Musk is arguably one of the greatest entrepreneurial minds of the 21st Century, but he was outsized an old school aerospace giant. Boeing won the bulk of NASA’s contract for a space taxi.  One of the other companies vying for the deal is SpaceX, the company headed by Tesla’s Musk, will get a…

    Talking Numbers
  • Anyone With $40 Could Become A Millionaire

    1 simple Warren Buffett quote explains the key investing strategy that could create unimaginable long term wealth for you and your family.

    AdChoicesThe Motley FoolSponsored
  • Play

    Tues., Sept. 16: Watch Humana Stock

    Humana, Global X Social Media Index ETF and Majesco Entertainment are among stocks to watch. WSJ's Chris Dieterich discusses the details with Michael Casey. Photo: Humana

    WSJ Live