What next? Record Short Interest

Last week I mentioned record short interest as a reason this market will find a bid. Click here for the record short interest stats from the Nasdaq, courtesy of Reuters. With the VIX exploding higher last week, I would hazard a guess that if you were short right now, and the market having pulled back 5% or so in one week, you'd be looking to cover and lock your gains. Therefore, on top of the put/call ratios and advance/decline information, one might argue there are plenty of reasons for a nice rally. Bubblevision also flips to the bearish bent, and they can arrange guest after guest offering negative views. Therefore, what usually works is to fade the noise, and back up the truck. Good luck.