Wednesday, June 6, 10:08 AM Hedge funds have doubled their net shorts of the S&P 500 in the last three weeks, reports SocGen. They’re at record highs with euro shorts.
Thus we get the familiar brew of Wizard based rumor-mongering, real and imagined, combined with you guessed it, a short squeeze aka “risk on day”. Squeezes tend to be brief, therefore I took my resource nimbles off and covered all my 5 year Treasury shorts, see comments. The pop looks especially bearish, because it looked effortless, and was centered around all the standard nonsense. It was sickening to watch even for me who was positioned to benefit some from it.Part and partial to hallowed out markets are incredibly swoons off of weaker guidance. There were several stunners even in Wednesday’s melt up.Men’s Wearhouse (MW): Q1 EPS of $0.53 misses by $0.01. Revenue of $536.7M (+1.1% Y/Y) misses by $56M. Shares-23% AH.Analysts at both KeyBank and Suntrust move off their Buy ratings on Tempur-Pedic (TPX -46.7%) after admitting they were blindsided by the company’s guidance bombshell.View the full article
