Enthusiastic market behavior of small caps like Gamestop
And AMC Entertainment
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. ”
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.
Nasdaq Composite Index
This week we are moving at a 2% loss pace.
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.