One of the tools that I use in Exodus to gauge the markets cross references intraday moves with % of shares sold short. Right now, as we speak, stocks with more than 10% of shares short are higher by 0.78%, led by gains in $SCSS, $ANF, $CMCM and $GES. Apparel stocks, as a sector, are higher by 3%. There is no sector that is more shorted than retail. Hence, the sector is ripping tits to the upside.
Sans large short positions, stocks are merely higher by 0.3%, demonstrating without a doubt that today’s rally is being fueled by a short squeeze.
Bearish sentiment had been accumulating, with thr gains in bonds. Should that unwind, and I think it will, equities will benefit most, especially stocks with large short positions.
More later.If you enjoy the content at iBankCoin, please follow us on Twitter