I see a lot of negative news out there.
Take a look at a few:
– China Trade War
– Lowe’s and Nordstrom cut outlook and their stock plummeted
– Qualcomm was hit with an anti-trust ruling from FTC
– Brexit is heating up again
– Sprint / T-Mobile deal is in jeopardy (DOJ recommends to block it)
Yet, the stock market continues to hold.
And the stocks are not selling off.
Nomura (financial firm) believes leveraged funds increased their short positions. And it has prompted fears of a short squeeze.
A short squeeze means a rally in stocks which forces short sellers (people betting on the stock market to go down) to close their positions. And their buying pushes the stock prices even higher.
Nomura is predicting a short squeeze-driven melt up in stocks…
Do you think they are right?
Yes or No