Could Major Banks’ Short Interest Be Signaling a Market Correction?
The November 30 short interest data have been compared with the previous figures, and short interest in most of these selected big bank stocks increased.
The financial sector was a major part of the Great Recession, and it was a major part of the recovery and raging bull market afterward. Generally speaking, the major financial institutions in the United States are a good barometer of the current state of U.S. markets.
So when short sellers make a play against these major banks, they are effectively betting for a downturn. Conversely, when they back off they might be expecting a surge. Granted, some plays are directly against individual companies, like we saw with Wells Fargo early in 2017.
The November 30 short interest data have been compared with the previous figures, and short interest in most of these selected big bank stocks increased.
Bank of America Corp. (NYSE: BAC) saw its short interest increase to 136.10 million shares. The previous level was 114.90 million. Shares were last seen trading at $24.58, in a 52-week range of $24.29 to $33.05.
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The number of JPMorgan Chase & Co. (NYSE: JPM) shares short rose to 20.20 million from the previous level of 18.68 million. Shares recently traded at $100.37, in a 52-week range of $99.28 to $119.33.
Citigroup Inc. (NYSE: C) short interest increased to 18.03 million from the previous level of 14.65 million. Shares were trading at $56.22, in a 52-week range of $55.83 to $80.70.
Wells Fargo & Co. (NYSE: WFC) short interest increased to 25.55 million shares from the previous reading of 21.40 million. Shares were trading at $47.76, within a 52-week range of $47.54 to $66.31.
Short interest in Goldman Sachs Group Inc. (NYSE: GS) decreased to 3.96 million shares from the previous 4.63 million. The stock recently traded at $176.80, within a 52-week range of $174.68 to $275.31.
Morgan Stanley’s (NYSE: MS) short interest for this settlement date was 9.82 million shares, down from the previous 12.55 million. Shares were changing hands at $40.62, in a 52-week trading range of $39.56 to $59.38.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
