Submitted by Tyler Durden on 01/17/2012 14:27 -0500
David Rosenberg
New York Stock Exchange
Rosenberg
Short Interest
With market dynamics continuing to be virtually identical to the start of last year, many struggle to find what incremental events at the margin may determine what is not priced in by the market (because apparently everything else is). As we pointed out recently, one such potential factor is that short interest on the NYSE has plunged to practically multi-year lows. And yet the melt up has continued indicating the short covering has come and gone, and at this point it is incremental buying that is probably driving stocks. Yet even that may be ending: since we are looking at the margin, it makes sense to present David Rosenberg's observations on what it is that he is looking at the moment, which appropriately enough, is NYSE margin debt, whose 12 month trailing average has just turned negative: traditionally an important inflection point.
From Gluskin-Sheff's David Rosenberg:
http://www.zerohedge.com/news/what-rosenberg-looking-rolling-margin-debt-has-gone-negative?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedge+-+on+a+long+enough+timeline%2C+the+survival+rate+for+everyone+drops+to+zero%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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