Massive Short Squeeze Behind Stock Rally Showing Signs of Ending
- Short base is not cleaned up yet, Morgan Stanley’s data show
- Market of late is ‘nothing but positioning,’ says Alpha Theory
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One big force at the center of the two-month equity rally is showing signs of fatigue.
It’s the behavior of short sellers, whose frantic efforts to unwind bearish wagers created buying that added fuel to the $7 trillion share advance. Evidence is arising now that the process is petering out.