While there remains a cohort of dogmatic traders who still naively believe that stock prices are driven by fundamentals, the reality - as price action in 2023 and really the past 15 years has so vividly demonstrated - is that as we have been saying for the past year, what does matter in today's market is liquidity (and thus the Fed), investor positioning (especially when it is offsire), CTAs and other systematic traders, retail momentum, corporate buybacks... and of course short squeezes.
Earlier this week we noted that despite the broader market meltup, Monday was the "Third Worst Day For Hedge Funds In 2023 Amid Brutal Discretionary Squeeze"; then just one day later, we showed how it was - you guessed it - another massive squeeze that sent the most shorted stocks soaring, both before...
