• Short Squeeze raids

    Yesterday, the 20DMF experienced a renewed heavy buying activity that was due to a large number of short squeeze attacks on a wide range of stocks from a variety of sectors.



    This is not at all healthy for the markets and is extremely disrupting, especially for Funds that use long/short pair trades in order to balance their portfolio. Typically they would buy NQ8 stocks but then would balance these long positions taking shorts in weak stocks such as AMC, BBBY, etc.

    When the NQ8 sector weakens and these funds have to lighten their long positions, they also repurchase some of their short positions. At the same time, Reddit/Robinhood investors band together to force these fishes to fly out of the water.

    Below are a few such stocks. How can this be positive?