Short sellers are being forced to unwind their positions, and it's sparking massive short squeezes.
The major indexes are breaking out to fresh all-time highs, and theyβre doing it with authority. The S&P 500, Nasdaq 100, Dow Jones Industrials, and Russell 2000 are all pushing higher in unison.
A fresh rate cut ignited risk appetite everywhere, and the momentum is feeding on itself.
Markets finally got the catalyst theyβd been waiting for.
The Federal Reserve cut rates yesterday, and the reaction was immediate: shorts scrambling, risk assets ripping, and a full-blown squeeze thatβs only accelerating today....
If you own a stock, then youβre only promising to be a future seller one day. But if youβre short a stock, then youβre a guaranteed future buyer.
The only way to unwind a short position is to buy the stock back.