An index of the “most-shorted” stocks in the US equity market is up a stunning 54% in January. For context, it was up 49% in the entirety of 2020, one of its greatest years ever.
Source: Bloomberg
And as shorts were squeezed drastically, hedge funds were forced to liquidate their favorite longs (and likely most liquid) to cover the margin calls and/or losses on the shorts…
Source: Bloomberg
That spilled over into the broad market with Nasdaq clubbed like a baby seal…
Biggest down day for markets since October
All S&P Sectors were lower today, led by Tech…
Source: Bloomberg
But, don’t worry, Fed’s Jay Powell and the Biden admin said they are “monitoring” the markets…
Today saw the biggest selling program (downtick) since October.,..
Source: Bloomberg
The selling peaked as Powell began speaking…
Source: Bloomberg
But today’s malarkey was in the big short-squeezes, so here are a handful for your amusement…
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