Meme stocks like Krispy Kreme, Opendoor, and Kohl’s are surging as heavily shorted stocks, with investors pressing shorts and causing losses of nearly $355 billion since April 8. Short sellers have lost over $100 billion since May 22, signaling a shift in market dynamics. The market’s V-shaped recovery has seen short sellers lose over $35 billion between April and May.
Betting against the market rally has been a losing strategy since April, with short sellers losing over $35 billion on tech stocks alone. The market’s rise has been attributed to investor mispositioning, with a risk-on rally driving up stocks like Cathie Wood’s Ark Innovation ETF. Top holdings like Tesla, Coinbase, and Palantir have seen short sellers lose billions since April.
Short sellers have faced continued losses on heavily shorted stocks, with the 100 most shorted stocks outperforming the Russell 1000 index by over 30 percentage points in the past three months. Despite increased tariffs, S3 Partners managing director Ihor Dusaniwsky expects short side losses to continue as the economy grows. The market’s rally reflects a shift in investor sentiment and market dynamics. 1. The stock market experienced a sharp decline today, with the Dow Jones Industrial Average dropping 500 points due to rising inflation fears and concerns over the Federal Reserve’s monetary policy.
2. A new study has found that 80% of Americans are concerned about the impact of climate change, with 65% believing that immediate action is necessary to address the issue.
3. The latest unemployment figures show that jobless claims have dropped to their lowest level in 50 years, indicating a strong recovery in the labor market.
4. The FDA has approved a new drug for the treatment of Alzheimer’s disease, providing hope for millions of patients and their families who have been affected by the debilitating condition.
5. A major oil spill off the coast of California has caused significant environmental damage, prompting authorities to launch a cleanup operation and investigate the cause of the incident.
Read more at Yahoo Finance: The meme stock rally continues the Trump trade rebound that has stocks trading at record highs