The losses in the market were widespread. The Dow Jones industrial average lost 168 points and the Nasdaq composite had its worst day since Nov. 9. Both the Nasdaq and the Standard & Poor’s 500 index closed out their worst weeks of the year. The Dow had its second-worst.

The dollar and U.S. Treasury prices rose as investors dumped risky assets and moved money into lower-risk investments. Energy stocks were among the hardest hit after the price of oil fell below $100 a barrel for the first time since February. Only one of the 10 industry groups in the S&P 500 rose, utilities, which investors tend to buy when they’re nervous about the economy.

“The jobs numbers were a disappointment,” said Phil Orlando, chief equity strategist at Federated Investors.

It was the third straight daily loss for the Dow, but it’s too early to know if it’s the start of a correction in the market. Even after its 1.4 percent decline this week, the Dow is still up 6.7 percent this year.

Investors are on edge about Europe once again as France and Greece both hold elections over the weekend. In France the socialist candidate Francois Hollande has a chance to unseat the incumbentNicolas Sarkozy, who has been at the forefront of fashioning Europe’s efforts to prevent its share currency from collapsing.

Crude oil plunged $4 to $98.49 a barrel on worries that demand would drop because of a weakening world economy. It was the first time oil has dropped below $100 since February 13.

The late slump in the week was a stark contrast to Monday, when the Dow closed at its highest level in more than four years, propelled by a report that showed a pickup in manufacturing. All that became a distant memory after a slew of poor economic reports were released the rest of the week.

On Thursday major retailers including Costco and Macy’s reported that April sales inched up less that 1 percent, the worst performance since 2009. Thursday also brought news that U.S. service companies expanded their business more slowly in April.

The Dow closed down 168.32 points, or 1.3 percent, at 13,038. All 30 companies that make up the index fell, led by Bank of America and Cisco.

The S&P 500 fell 22.47 points, or 1.6 percent, to 1,369, while the Nasdaq index fell 67.96 points, or 2.2 percent, to 2,956.

For the week, the S&P lost 2.4 percent, the Nasdaq 3.7 percent.

The yield on the benchmark 10-year Treasury note dropped to 1.88 percent from 1.92 percent late Thursday as demand increased for safe investments. The yield hasn’t settled that low since early February.

The culprit for the distress in financial markets was a report from the Labor Department Friday showing that U.S. job growth slumped in April for a second straight month. The 115,000 jobs added in April and the 154,000 in March were down form an average of 252,000 a month from December through February.

Orlando noted that the first few months of the year were marked by a number of abnormal conditions including an uncharacteristically warm January and February. That led to a spurt in hiring which usually occurs in spring.

Retail sales and hiring were also affected by an earlier Easter, which fell on April 8 this year, 16 days earlier than last year. That pushed some retail sales ahead to March, leaving April’s numbers weaker than they might have been. Retailers also blamed a late Mother’s Day for pushing some sales out of April and into May. Unusually warm weather in February and March also pulled forward some sales that would have normally occurred in April.

“The surge in hiring and spending that usually occurs in March through April, occurred earlier in the year this year,” said Orlando. “We have to wait for economic numbers from May and June to get a better idea of the underlying strength of this economy.”

After the price of oil fell, energy company stocks turned lower in response. Southwestern Energy Co.fell 7 percent and Marathon Oil Corp. fell 3 percent.

In other trading:

— Warnaco Group Inc. dropped over 6 percent after the clothing maker lowered its 2012 forecast and said that its first-quarter net income fell, hurt by the weak European economy.

— Aon Corp. fell almost 6 percent after the insurance broker reported first-quarter net income fell 3 percent due to higher costs and unfavorable currency exchange rates.

— LinkedIn Corp. rose 7 percent after announcing late Thursday that its first-quarter profit more than doubled, topping expectations. The social networking company also announced an acquisition.

— Tilly’s Inc. climbed 8 percent in the clothing retailer’s debut on the New York Stock Exchange. Tilly’s sells surf-inspired and casual West Coast-styled clothing and accessories.

— Einstein Noah Restaurant Group Inc. soared 19 percent after the owner of bagel chain Noah’s Bagels said it is considering strategic alternatives, including a possible sale of the company

source from: yahoo

That could offer some respite from a string of weak U.S. economic data and the earnings season winding down.

Markets worldwide have closely watched developments in Europe for the past several months, with calls for austerity seen as positive for stocks as they seek to prevent a credit crisis in the region that could take down or deeply hurt the global economic recovery.

But an economic slowdown throughout the region has amplified calls for a change of direction.

In France, the prospect of a victory by Francois Hollande over conservative incumbent Nicolas Sarkozy, which would instate the country’s first Socialist president since 1995, initially alarmed some investors. Hollande’s win could be a hurdle to the German-led drive for austerity in Europe.

Adding to the markets’ jitters: Anti-bailout parties are expected to perform well in Greece’s vote on Sunday, raising the risk of more opposition to already unpopular reforms.

“There’s potential for uncertainty and instability in Europe,” said John Praveen, managing director ofPrudential International Investment Advisors in Newark, New Jersey. “The market is pricing in extremely negative scenarios.”

Praveen said there is still room for a market rebound if Hollande, should he win the presidency, comes out with a more conciliatory tone that would ease investors’ fears about France’s commitment to fiscal stability.

Investors are waiting to see if Hollande, who holds an advantage in polls over Sarkozy, will be able to square France’s need for fiscal reforms with his plans to promote growth.

“I’m not quite sure, regardless of who wins, does it say ‘sell the S&P’? … It just continues the uncertainty, no matter who wins,” said Frank Lesh, a futures analyst and broker at FuturePath Trading LLC in Chicago.

TECHNICALS RULE IN A LIGHT WEEK

Technical levels could regain importance next week as the U.S. economic data calendar thins and fewer than 30 of the S&P 500 components are expected to report earnings.

“On no news, we all start looking at charts,” said Ryan Detrick, senior technical strategist at Schaeffer’s Investment Research in Cincinnati.

“We found support recently on the S&P near 1,360. If we violate that, it would be a bad sign,” he said.

The S&P 500 slipped below that level twice last month and bounced back, but has since found strong resistance at 1,400. The recent soft economic data, capped with Friday’s payrolls report showing the third straight month in which hiring had slowed, has dampened hopes for a convincing break upward.

The data dragged the market lower. The S&P 500 and the Nasdaq Composite posted their worst weeks this year. For the week, the Dow Jones industrial average dropped 1.4 percent, the Standard & Poor’s 500 Index slid 2.4 percent and the Nasdaq lost 3.7 percent.

The high points of next week’s economic calendar will come on Friday, with the U.S. Producer Price Index for April and the preliminary reading for May on consumer sentiment from the Thomson Reuters/University of Michigan surveys.

In terms of earnings, the top names next week include Dow components Walt Disney Co , which reports on Tuesday, and Cisco Systems , due Wednesday.

Wednesday will also bring Macy’s earnings report, followed Thursday by Kohl’s , which will be dissected for clues on the mood of U.S. consumers.

source from: yahoo

AUDUSD Analysis.
AUDUSD is facing 1.0225 support, a breakdown below this level could signal resumption of the downtrend from 1.0855 (Feb 29 high), then further decline towards 1.0000 could be seen. Resistance is at 1.0320, only break above this level could indicate that lengthier consolidation of the downtrend is underway.

GBPUSD Analysis.
GBPUSD had formed a cycle top at 1.6301 on 4-hour chart. Further decline would likely be seen after a minor consolidation, and next target would be at 1.6100 area. Key resistance is at 1.6301, only break above this level trigger another rise towards 1.6500.

EURUSD Analysis.
EURUSD’s downward movement extends to as low as 1.3096. Further fall could be seen after a minor consolidation, and next target would be at 1.3000 area. Resistance levels are at 1.3180 and 1.3200, as long as these levels hold, downtrend will continue.

USDCAD Analysis.
USDCAD has formed a cycle bottom at 0.9799 on 4-hour chart. Further rally would likely be seen after consolidation, and the target would be at 0.9950 area. Support is at 0.9799, only break below this level could signal resumption of the downtrend from 1.0051.

USDCHF Analysis.
USDCHF’s upward movement extends to as high as 0.9173. Further rise could be seen after a minor consolidation, and next target would be at 0.9200 area. Support is at 0.9100, as long as this level holds, uptrend will continue.

The above analysis was provided by www.forexcycle.com

source from: fxtimes

Job creation for April was disappointing — just 115,000, the fewest since October, the government said Friday. After three months that averaged about 250,000, the March and April figures have economists worried.

On the bright side, what investors call earnings season is almost over, and it was better than just about anyone hoped: 403 companies in the Standard & Poor’s 500 have reported first-quarter earnings, and 72 percent have beaten Wall Street estimates.

In Europe, France holds an election Sunday, and Socialist challenger Francois Hollande holds a narrow lead in polls. If he wins, it will throw into question whether France sticks to government budget-cutting to fight the European debt crisis.

The Associated Press asked three market experts to weigh in on these three topics and what they mean for the market in the weeks ahead. They are:

• Joseph Tanious, Global Market Strategist, JPMorgan Funds.

• Phil Orlando, chief equity strategist at Federated Investors, which manages a suite of mutual funds.

• Dan Greenhaus, chief global strategist for the brokerage BTIG in New York.

Here’s what they had to say:

Jobs report

Tanious: “The jobs report reinforced our view that the labor market is healing, but at a painfully slow pace. … We are continuing to see job gains, but there’s no doubt it’s been slowing down.”

Still, he said, “stock investors are best served realizing that the U.S. economy is healing … There’s a big difference between a weak economy that’s continuing to deteriorate and a weak economy that’s slowly improving.”

Orlando: While the jobs numbers were disappointing, “we have to remember that there were several distorted seasonal factors that hurt hiring last month, starting with the unusual warm weather January through March this year and an earlier Easter than usual.”

Greenhaus: Coming after a weak report in March, the April figures look like the start of a worrisome trend. “One month can be weather-related, two months of weaker than expected job growth is dangerously close to a trend,” Greenhaus said in a note to clients. “Weak job growth and weak income growth is most unwelcome especially at a time when so many are banking on the exact opposite.”

Earnings

Tanious: “We’re having an exceptional earnings season in the sense that 60 to 70 percent of companies are exceeding analysts’ estimates on both earnings and revenue. That’s a net positive, and that trend is up from what we saw over the previous two quarters.”

“However, if you remove yourself from the day-to-day, the trend we’re seeing is that earnings growth is continuing to decelerate, which is expected in a maturing profit cycle.”

Orlando: “The stated expectations for earnings in the first quarter were that revenue and income would break even. The thinking was that the economy was slowing and margins had peaked. But we’ve had a much better earnings season, which reflects the strength of corporate America. The outlook is cautious since we don’t know how the economy will fare.”

Greenhaus: Companies have been reporting stronger first-quarter earnings over the past month but it’s been little help to the stock market. That was to be expected following the S&P 500 index’s 12 percent rally in the first three months of the year.

“The fact that companies beat earnings expectations isn’t news. That happens every quarter. This time, expectations got so low there was no way they couldn’t get beaten.”

Europe

Tanious: “The crisis in Europe is far from over. Due to the austerity that many of these countries are implementing, we continue to believe that Europe is going to be experiencing a mild recession this year. … You have to wonder when this popular uprising of anti-austerity feeling is going to transfer into public office.”

“Markets never move in a linear fashion. There are a lot of headlines out there and a lot of risks that are likely to lead to increased volatility throughout the year.”

Orlando: “The recurring theme in these upcoming elections is that they need to rethink policy in Europe about how to deal with the euro zone debt crisis. … They need to figure out a way to stimulate private economic growth to offset the drag from imposed government austerity.”

Greenhaus: In France, the Socialist Hollande stands a good chance of beating incumbent Nicolas Sarkozy, who has been at the forefront of efforts to avoid a collapse of the region’s shared currency along with German Chancellor Angela Merkel.

“How you campaign and how you govern are always two different things. So what policies (Hollande) will pursue are unknown. Of course, financial markets prefer the known to the unknown.”

source from: app

-Fundamental outlook still favors more risk liquidation

-Solid retail sales puts more pressure of Fed to reverse

-Spanish yields still at elevated levels; Euro bearish

-RBA Minutes come in on dovish side; more rate cuts ahead

-USD/JPY expected to find support over coming sessions

In Monday’s commentary we warned that the daily close was critical before making any fresh trading decisions and this proved to be an effective strategy, with the break in EUR/USD below 1.3000 failing to generate any initial downside follow through, before a surge into the latter half of the day just shy of 1.3150. We also recommended keeping a close eye on US equity markets, and here too the price action was somewhat ambiguous, with the S&P and Nasdaq closing lower on the day, despite some decent gains in the Dow. Overall, there are still no clear signs of any reason to see a departure from our bullish US Dollar and bearish global macro fundamental outlook discussed on Monday, and we suspect that any rallies in the Euro or equities should soon be met with renewed offers.

US retail sales data was solid, to reaffirm the newly adopted more hawkish Fed slant, while Spanish yields remained above 6% to remind us of the ongoing stress in the Eurozone. We also highlighted our concern of the impact of the China slowdown on commodity bloc and emerging market economies, and the release of the latest dovish RBA Minutes early Tuesday, only helps to strengthen this outlook. The Australian central bank has left the door wide open for additional rate cuts at the upcoming meeting, should inflationary pressures show signs of moderation. The local economy has already been slowing in reaction to the China cool down, and we project more relative underperformance ahead. Therefore, Aussie rallies should continue to be sold in anticipation of a sustained break back below parity over the coming weeks and maybe even days.

For now, we will keep a close eye on EUR/USD. Despite the latest surge, overall price action is still quite bearish while below 1.3215, and only a break and close back above this level would delay the outlook. We would not rule out the possibility for a bit more of a short squeeze on Tuesday towards 1.3200, but any rallies beyond the figure should be well capped. A break back below 1.2990 will really put the pressure on the downside and likely leads to an acceleration of broad risk liquidation that opens an immediate retest of the early 2012 lows by 1.2660.

Elsewhere, it will be interesting to see how USD/JPY responds from here. While there are still remnants of correlation with risk off price action to Yen outperformance, we contend that this correlation has more or less faded, and as such, any additional strength in the Yen from here should be met with strong offers. USD/JPY has dropped back into the 80.00 area, and the correction off of the 2012 highs by 84.20 could be close to reaching its course. Technically, the pair is now testing some solid support by both the daily and weekly Ichimoku cloud tops, and we will be on the lookout for a bullish resumption over the coming sessions.

ECONOMIC CALENDAR

TECHNICAL OUTLOOK

EUR/USD: The latest round of setbacks have stalled ahead of some key multi-week support by 1.3000 and from here we still can not rule out risks for additional consolidation above 1.3000, before considering bearish resumption. Ultimately, any rallies towards 1.3300 should be well capped, while a break and daily close back under 1.3000 would accelerate declines.

USD/JPY: The market continues to correct from the recent 2012 highs established at 84.20 several days back, and risks still exist for additional setbacks into the 79.00-80.00 area before considering a bullish resumption. Overall, our outlook is highly constructive and we see the pair in the process of carving a longer-term base ahead of the next major upside extension into the 85.00-90.00 area. We would therefore expect to see the shaping of a fresh medium-term higher low over the coming days somewhere in the 79.00-80.00 area. Ultimately, only below 78.00 delays outlook and gives reason for concern.

GBP/USD: Failure to establish any fresh momentum on the recent break above 1.6000, followed by an aggressive bearish reversal, now suggests that the market could finally be looking to carve a top in favor of a more significant decline over the coming sessions. Look for a break and close below next support at 1.5800 to reaffirm outlook, while back above 1.6065 would be required to negate.

USD/CHF: Our core constructive outlook remains well intact, with the latest setbacks very well supported by psychological barriers at 0.9000. It now seems as though the market could be looking to carve a fresh higher low, and we will be watching for additional upside back towards the recent range highs at 0.9335 over the coming sessions. Above 0.9335 should accelerate gains towards the 2012 highs by 0.9600 further up. Ultimately, only back under 0.9000 delays and gives reason for pause.

source from: dailyfx

What’s Expected:

Time of release: 04/17/2012 13:00 GMT, 9:00 EST

Primary Pair Impact: USDCAD

Expected: 1.00%

Previous: 1.00%

DailyFX Forecast:1.00%

Why Is This Event Important:

Although the Bank of Canada is widely expected to keep the benchmark interest rate at 1.00% in April, the fresh batch of commentary coming out of the central bank may prop up the Canadian dollar should Governor Mark Carney continue to strike an improved outlook for the region. As the recovery gathers pace, we may see the central bank head continue to soften his dovish tone for monetary policy, but concerns surrounding the record-rise in household debt may lead Mr. Carney to preserve a balanced tone for the economy as the marked appreciation in the local currency continues to dampen the fundamental outlook for the region.

Recent Economic Developments

The Upside

The Downside

The jump in business sentiment paired with the stickiness in price growth may encourage the BoC to raise its fundamental assessment for the region, and a less dovish policy statement may lead the EURCAD to retrace the decline from earlier this month as it raises the scope for a rate hike. However, the slowdown in private sector consumption along with weakening trade conditions may push the central bank to retain a wait-and-see approach throughout 2012, and we may see the BoC keep rates on hold for a prolonged period of time as policy makers continue to see potential headwinds for the economy. In turn, we may see the short-term rebound in the EURCAD gather pace over the next 24-hours of trading, and the pair finally break and close above the 100-Day SMA (1.3215) should Governor Carney curb speculation for higher borrowing costs.

Potential Price Targets For The Rate Decision

A look at the encompassing structure sees the EURCAD reversing sharply after briefly breaking below the 23.6% Fibonacci extension taken from the September 19th and January 17th troughs at 1.3050. As noted in last week’s EURCAD Scalp Report, the pair continues to trade within the confines of a wedge formation dating back to the start of the year with initial daily resistance seen at the 50-day moving average at 1.3150 backed closely by the 38.2% extension at 1.3165. Our medium-term outlook on the pair remains weighted to the topside with only a break below trendline support dating back to the January low negating our directional bias.

Our 30min scalp chart shows the pair surging in North American trade before encountering resistance at 1.3140. It seems as though the correction off the channel break seen last week may be complete with a breach above last week’s highs just above the 50% extension taken from the March 14th and April 5th troughs at 1.3165 eying subsequent topside targets at 1.3190, the 61.8% extension at 1.3216, and 1.3250. Interim support now rests with the 38.2% extension at 1.3113 backed by 1.3080 and the 23.6% extension at 1.3050. Should the data prompt a bullish loonie response, look to target downside levels with a break below the monthly low at 1.2945 putting a bearish tone on the pair.

How To Trade This Event Risk

Beyond the rate decision, we will be keeping a close eye on the policy statement as it promises to spur volatility in the exchange rate, and we may see the Canadian dollar snap back against the Euro should the BoC continue to strike an improved outlook for the region. Therefore, if we see the central bank soften its dovish tone for monetary policy, we will need a red, five-minute candle following the release to establish a sell entry on two-lots of EURCAD. Once these conditions are met, we will set the initial stop at the nearby swing high or a reasonable distance from the entry, and this risk will generate our first objective. The second target will be based on discretion, and we will move the stop on the second lot to breakeven once the first trade reaches its mark in an effort to lock-in our profits.

In contrast, the ongoing slack in the real economy paired with the slowdown in global trade may encourage the BoC to retain a wait-and-see approach throughout 2012, and we may see Governor Carney talk down speculation for higher borrowing costs as the region in an effort to stimulate a stronger recovery. As a result, if the central bank head maintains a cautious tone, we will carry out the same strategy for a long euro-loonie trade as the short position mentioned above, just in reverse.

Impact that the Bank of Canada Interest Rate Decision has had on CAD during the last meeting

March 2012 Bank of Canada Interest Rate Decision

Although the Bank of Canada kept the benchmark interest rate at 1.00%, central bank Governor Mark Carney held an improved outlook for the region, stating that the ‘recent developments suggest that the outlook for the Canadian economy is marginally improved.’ As the BoC softened its dovish tone for monetary policy, the EURCAD quickly slipped back below 1.3150, and the Canadian dollar held its ground throughout the North American trade as the pair ended the day at 1.3140.

source from: dailyfx

US dollar is higher against European currencies today, gaining against the euro and the pound. The economic situation in the United States is showing some improvement, with March retail sales gaining by 0.8% since February — and up more than 6% since March 2011. The news is helping the US dollar as concerns about the eurozone economy (which some think might be in recession or heading that way) continue to hold the 17-nation currency down.

Concerns about Spain continue to weigh on the eurozone, and there are still issues regarding the British economy, so the euro and the pound are both losing ground to the dollar. And, interestingly, just after the Chinese introduced a wider trading band for the yuan against the US dollar, the greenback ended higher against the yuan. It’s an interesting day right now, with the greenback gaining against other majors, except the yen, which is higher against the dollar.

At 14:36 GMT EUR/USD is lower at 1.3049, down from the open at 1.3064. GBP/USD is down to 1.5845 from the open at 1.5853. USD/JPY is down to 80.4145 from the open at 80.8495.

source from: topforexnews

U.S. retail sales for March shot up 0.8 percent, sharply higher than the forecast, pushing Procter & Gamble up 1.5 percent, while giving Wal-Mart Stores , the world’s largest retailer, a 1.4 percent boost.

But Apple shares dropped 4.2 percent to $580.13. After a meteoric rise of 43 percent this year, Apple was ripe for profit taking.

Apple wasn’t the market’s only worry. Spain’s rising borrowing costs and a weak New York state manufacturing report stirred concerns about Europe’s debt crisis and the U.S. economic recovery.

“The market behavior is fairly manic today and investors are confused after a mixed set of data, Spanish yields, and momentum stocks like Apple losing ground,” said James Dailey, portfolio manager at TEAM Asset Strategy Fund in Harrisburg, Pennsylvania.

“The confusion is leading to anxiety, and that’s why we are seeing the blue chips, the large caps, outperform.”

Other major drags on the Nasdaq included a slide of 9 percent in the shares of Mattel Inc , the world’s largest toy maker, on declining quarterly sales, and a 3 percent drop in Google Inc shares ahead of a high-stakes legal battle with Oracle Corp.

The Dow Jones industrial average <.DJI> rose 71.82 points, or 0.56 percent, to 12,921.41 at the close. But the Standard & Poor’s 500 Index <.SPX> inched down 0.69 of a point, or 0.05 percent, to 1,369.57. The Nasdaq Composite Index <.IXIC> dropped 22.93 points, or 0.76 percent, to close at 2,988.40.

Procter & Gamble, the world’s largest household products company, closed at $66.78, up 1.5 percent, and helped bolster the Dow. Wal-Mart, another Dow component, ended at $60.58, up 1.4 percent.

Spain’s 10-year government bond yields climbed above the 6 percent mark on Monday for the first time since the beginning of December. Spain has acknowledged that it has probably slipped into its second recession since 2009.

“Barring an accelerated flight of assets out of the euro zone and into U.S. equities, we see little reason for equities to rally appreciably above the most recent high,” said Peter Cecchini, managing director at Cantor Fitzgerald in New York.

“Having said this, we are expecting a short-term bounce, which may lead to a retest of 1,400,” he said.

Monday’s mixed session followed last week’s pullback, when both the Dow and the S&P 500 suffered their worst two-week percentage drops since late November on increasing concerns about the euro zone’s debt crisis and weaker-than-expected U.S. economic data.

Earnings season will pick up steam this week, with 86 S&P 500 companies scheduled to report results. According to Thomson Reuters data through Monday, of the 34 S&P 500 companies to have reported earnings so far, 76 percent have reported earnings above analysts’ expectations.

Mattel’s quarterly profit fell short of analysts’ expectations as price increases hurt sales of its iconic Barbie dolls and Hot Wheels cars, driving its stock down 9.1 percent to $31.01.

Google’s stock slid 3 percent to $606.07 on Monday, when jury selection got under way in a high-stakes dispute over smartphone technology with Oracle Corp. Shares of Oraclegained 0.5 percent to $28.64.

Volume was light, with about 6.25 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year’s daily average of 7.84 billion.

Advancers outnumbered decliners on the NYSE by a ratio of 17 to 13, while on the Nasdaq, about 13 stocks rose for every 12 that fell.

source from: yahoo

The S&P/Case Shiller composite index of 20 metropolitan areas was flat in January on a seasonally adjusted basis. A Reuters poll of economists forecast a decline of 0.2 percent after December’s 0.5 percent drop.

But on a non-seasonally adjust basis, prices tumbled 0.8 percent.

On a yearly basis, prices fared a little better with January notching a 3.8 percent decline compared to the year before, in line with expectations and an improvement from December’s 4.0 percent drop.

source from: yahoo

As of March 15, short interest rose to about 12.834 billion shares, compared with 12.576 billion shares as of February 29.

Investors who sell securities ‘short’ borrow shares and then sell them, expecting the stock to fall so they can buy the shares back at the lower price, return them to the lender and pocket the difference. Shorting can also be used for various hedging strategies.

NYSE short interest on March 15 was equivalent to 3.36 percent of the total shares outstanding, NYSE said.

source from: yahoo