They flipped their stance right after the election! Wall Street is going wildly bullish—is this a death sentence for short sellers?
These Wall Street institutions change their tune faster than you can turn a page.
Just two days ago, before the election results were in, they were so spooked they were desperately de-leveraging. Today, as soon as the results came out, JPMorgan, HSBC, and Citadel all came out shouting: the path of least resistance into year-end is up.
What makes them so confident? Put these few data points together, and you’ve got a “death warrant” ready for the bears.
First, short sellers are already trapped.
Before the election, everyone was scared stiff, and short positions were nearing a five-year high. Even trend-following CTA strategies were barely holding any positions. At this point, even a little buying could force short sellers to cover, pushing the broader market sharply higher.
Second, retail investors and companies are buying the dip like crazy.
Retail investors have been net buyers for 22 straight trading days, pouring $33 billion into the market. Corporate buybacks are back, too: starting next Monday, 85% of S&P 500 companies will be able to resume buying their own shares. How are the bears supposed to withstand that kind of buying pressure?
Third, earnings are rising while valuations are falling.
The Nasdaq 100’s price-to-earnings ratio has dropped to 19, while semiconductors have been slashed 45% from their highs. But here’s the wildest part: forward earnings expectations for memory chips and AI infrastructure have actually been raised by more than 30%. That’s not a bubble—that’s a bargain after the sell-off.
The deeper trump card lies in one sentence from HSBC.
HSBC says an IPO by AI giant Anthropic could be the ultimate catalyst for a broad-based bullish turn in US tech stocks. If it lists successfully, sentiment across the entire tech sector could be set ablaze.
Historical data is joining in, too: since 1938, US stocks have risen in 95% of the 12-month periods following midterm elections, with an average gain of 14%.
Can you see the danger lurking beneath the surface?
Once the election is over, the political smokescreen is pulled away. The bad news is out of the way, earnings are solid, and valuations are low—all that’s left is for the big players to give the word. Anyone blindly going short now is practically delivering Wall Street a New Year’s gift basket.
Stop staring only at the tiny corner of the crypto world. If this US stock rally really turns into a short squeeze, global risk assets—including the Bitcoin you’re holding—could all bounce back along with it.$KORU $SOXL $BTC
These Wall Street institutions change their tune faster than you can turn a page.
Just two days ago, before the election results were in, they were so spooked they were desperately de-leveraging. Today, as soon as the results came out, JPMorgan, HSBC, and Citadel all came out shouting: the path of least resistance into year-end is up.
What makes them so confident? Put these few data points together, and you’ve got a “death warrant” ready for the bears.
First, short sellers are already trapped.
Before the election, everyone was scared stiff, and short positions were nearing a five-year high. Even trend-following CTA strategies were barely holding any positions. At this point, even a little buying could force short sellers to cover, pushing the broader market sharply higher.
Second, retail investors and companies are buying the dip like crazy.
Retail investors have been net buyers for 22 straight trading days, pouring $33 billion into the market. Corporate buybacks are back, too: starting next Monday, 85% of S&P 500 companies will be able to resume buying their own shares. How are the bears supposed to withstand that kind of buying pressure?
Third, earnings are rising while valuations are falling.
The Nasdaq 100’s price-to-earnings ratio has dropped to 19, while semiconductors have been slashed 45% from their highs. But here’s the wildest part: forward earnings expectations for memory chips and AI infrastructure have actually been raised by more than 30%. That’s not a bubble—that’s a bargain after the sell-off.
The deeper trump card lies in one sentence from HSBC.
HSBC says an IPO by AI giant Anthropic could be the ultimate catalyst for a broad-based bullish turn in US tech stocks. If it lists successfully, sentiment across the entire tech sector could be set ablaze.
Historical data is joining in, too: since 1938, US stocks have risen in 95% of the 12-month periods following midterm elections, with an average gain of 14%.
Can you see the danger lurking beneath the surface?
Once the election is over, the political smokescreen is pulled away. The bad news is out of the way, earnings are solid, and valuations are low—all that’s left is for the big players to give the word. Anyone blindly going short now is practically delivering Wall Street a New Year’s gift basket.
Stop staring only at the tiny corner of the crypto world. If this US stock rally really turns into a short squeeze, global risk assets—including the Bitcoin you’re holding—could all bounce back along with it.$KORU $SOXL $BTC
