Many market participants are looking dumbstruck at the miraculous surge in Dow Transports, Small Caps, and Homebuilders this week off the bond-short-puke lows of Wednesday morning. The answer – sadly for those who believe this is presaging new new highs and utopia once again – is that this was the biggest weekly short-squeeze in 11 months… and more troubling for the bulls – it ran out of steam today.
“Most Shorted” stocks (BBG Ticker GSCBMSAL Index) rose 3.3% on the week…