Hedge fund short covering volume in the past 35 days (since the start of year) is 99.8th percentile going back 10 years. How do we view this and how are we playing it moving forward?
Since there were so many short positions created in the market, does this buying (closing open short positions) mean that the market is finally going positive?
It raises the question of what might happen if we were to get a more meaningful rebound and breakout from the market downtrend. Could we be closer to the lows than we we've been this downturn? Or is the recent upward market movements a ‘bear rally’ and we should be expecting a pullback in share prices across the broad market?
there are now signs of peaking inflation, but is that a sufficient catalyst for the rally to have any lasting power?
Do we need to see a larger and more persistent improvement in the macro outlook, to drive a larger scale reallocation of institutional money back into equities?
Leave a Reply