This week’s wild market rally wasn’t driven by conviction — it was fueled by panic.
Here’s an excerpt from ZeroHedge’s premium service that confirms my earlier post concerning the fake stock market rally on Sunday/Monday:
“The Goldman Prime Brokerage book saw the second largest notional net buying in 5 years (+4.3 sigma), driven by short covers and to a lesser extent long buys (1.6 to 1). All regions were net bought, led by North America and to a lesser extent Europe (both led by short covers)…
“Still focusing just on the US, yesterday's notional short covering in single stocks collectively was the largest since Mar 7th and ranks in the 99th percentile on a 5-year lookback. Managers reduced macro hedges as well, as US-listed ETF shorts were net covered -4.2% - the largest 1-day % decrease since Apr 9th (-4.9%).”