Business & Investment

The chart shows that the shortest stocks have seen the biggest rise since the end of last year.

Enthusiastic market behavior of small caps like Gamestop
GME,
+ 134.84%

And AMC Entertainment
AMC,
+ 301.21%

It elicited an incredible reaction across Wall Street.

This chart of Societe Generale may want to dismiss them as a sideshow, but suggests that the surge due to a slight increase in very short stocks is a much broader phenomenon.

Indeed, the $ 3 trillion Russell 2000 most deficient stockRUT The index has been making huge profits since the end of last year, beating other peers.

The top 5% of the most deficient stocks have doubled in value since the end of October, eliminating the next 5% of the most deficient stocks and then surpassing the most deficient stocks. It was.

Andrew Raptone, Head of Quantitative Equity Research at Societe Generale, said in a note Wednesday: “This top tranche is now separated from the next tranche, and the level of short-term interest rates itself is a goal of many of the activities. It suggests that there is. ”

to see: It’s not just GameStop: some of the other very scarce stocks here shoot higher

Analysts suggest that retailers gathering on platforms like Reddit and Discord are aggressively looking for high-percentage stocks with short-term interest rates to generate short squeeze. In the face of penal losses, shortsellers were hoping to cover their shorts, buy back shares and accelerate profits.

S & P 500
SPX,
-2.57%
,
Dow Jones Industrial Average
DJIA,
-2.05%

Nasdaq Composite Index
COMP,
-2.61%

This week we are moving at a 2% loss pace.

read: Is GameStop and AMC trading a big risk?Analysts

The chart shows that the shortest stocks have seen the biggest rise since the end of last year.

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D23A7D391798%7D&siteid=rss&rss=1 The chart shows that the shortest stocks have seen the biggest rise since the end of last year.

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