The average short interest across the market was up just 0.1 percent, according to Data Explorers.
In stocks that have surged year to date, such as KB Home (up 40 percent), Dendreon (up 86 percent) and Mako Surgical(up 45 percent), short interest is up just 2 to 3 percent. Short interest was flat in Sears, up 39 percent year to date.
“Short sellers aren’t panicking. They’re not running for the door,” Gordon said. “Maybe they think it’s an overly optimistic January and things might get more miserable as the year goes on.”
Dan Nathan of FGC Securities disagreed with Gordon’s data assessment.
“At the end of the day, when you look at some of these stocks like First Solar and Netflix, when these things are rallying the way they are, up 20, 30, 40 percent in a very short period of time, there is no doubt about it, this is caused by shorts climbing over each other to cover when there is the least bit of good news,” he said.
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Trader disclosure: On Jan. 30, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders: Terranova owns AXP; Terranova owns F; Terranova owns APC; Terranova owns WFM; Terranova owns OXY; Terranova owns XOM; Terranova owns TRLG; Terranova owns SBUX; Terranova owns JNPR; Terranova owns VRTS; Terranova owns IBM; Terranova owns LQD; Terranova owns SU; Terranova owns SJM; Terranova owns BRCM; Terranova owns MUB; Terranova owns EMC; Terranova owns CSCO; Terranova owns V; Adami owns C; Adami owns GS; Adami owns INTC; Adami owns AGU; Adami owns MSFT; Nations is long BAC; Nations is long C; Nations is long SPY;
For Amelia Bordeau
For Emil Brolick
For Dennis Gartman
Gartman is long gold
Gartman is short Euro
For William Duff Gordon
For Kathleen Smith
Renaissance has a position in RENN
Renaissance has a position in ZNGA
Renaissance has a position in GRPN
For Fred Cannon
Bank of America Corp. (BAC - $7.29, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Bank of America Corp. in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Bank of America Corp. securities
Regions Financial Corporation (RF - $5.31, Market Perform)
KBW expects to receive or intends to seek compensation for investment banking services from Regions Financial Corporation in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in Regions Financial Corporation securities
U.S. Bancorp (USB - $27.86, Outperform)
KBW expects to receive or intends to seek compensation for investment banking services from U.S. Bancorp in the next three months.
KBW currently makes a market and/or acts as a liquidity provider in U.S. Bancorp securities.