Goldman Basket Shows Painful Month for Shorts Caught in Squeeze

When the US stock market recovers from selloffs in the face of lingering uncertainty these days, there’s often an aggressive buyer lurking beneath the moves higher: short-sellers caught in a squeeze.

Take Goldman Sachs Group Inc.’s basket of the most-shorted stocks, which has surged 16% this month, beating the S&P 500 Index’s 0.7% advance and putting the bank’s tracker on pace for its best October on record, based on data compiled by Bloomberg, going back to 2008.