SPX, QQQ, RUT Short Interest Showing Signs of Life

A renewal in short selling could present near-term problems for stocks

Apr 5, 2017 at 2:06 PM
facebook twitter linkedin


Short interest has been on the rise in recent reporting periods. According to Schaeffer's Senior V.P. of Research Todd Salamone, this sign of growing caution could be a near-term speed bump for stocks, after a period of short covering helped carry the market off its pre-election lows. Here's a quick rundown of the short interest backdrop on the S&P 500 Index (SPX), PowerShares QQQ Trust (QQQ), and Russell 2000 Index (RUT).

SPX Short Interest Near Annual Lows

In the latest reporting period, SPX short interest rose 1.25%. But these bearish bets are still at relatively low levels, leaving room for more bears to pile on. According to Schaeffer's Senior Quantitative Analyst Rocky White, S&P 500 short interest ranks in the bottom 20th percentile of its annual range.

s&p 500 index short interest

QQQ Short Interest Just Off Multi-Year Lows

Short sellers have taken a more active interest in the tech-heavy QQQ of late, with short interest rising 2% in the latest reporting period. The exchange-traded fund (ETF), as a reminder, serves as a proxy to the Nasdaq-100 Index (NDAX). There's still plenty of room for additional short selling on QQQ. Short interest ranks near the 19th percentile in both the one- and five-year time frames.

powershares qqq trust etf short interest

RUT Short Interest Approaches a Historical Norm

Finally, short interest on RUT edged up 0.8% in the most recent report. Historically, currently short interest is in the middling 51st percentile of its annual range, suggesting short sellers have been less reticent to bet against small-cap stocks.

russell 2000 short interest

 

Stop leaving money on the table with the same old broken options trading approach...

There is no options strategy that more perfectly capitalizes during earnings season better than this simple call and put buying strategy. Perfect for aggressive traders looking to recover their suffering portfolios so far in 2022. With the simplest possible options strategy, Schaeffer's team with 100+ years of options trading excellence, target 200% gains on every single trade. So many trades are being beaten down by the market, but don't be one of them! Don't waste another second... join us right now before the next trade is released! 

 
Best stocks for October and worst stocks for October
 


 


 
Special Offers from Schaeffer's Trading Partners