There was an interesting headline earlier this afternoon in Bloomberg, which tried to explain today’s furious rally which pushed e-minis right back out of bear market territory:
It’s a good headline, unfortunately it’s dead wrong, because while stocks did in fact snap a three week losing streak and also averted being down for a record 11 out of 12 weeks…
… with every single sector closing solidly green…
… the reason for said snapping was just the opposite of optimism because with a recession now assured…
… what prompted today’s furious short squeeze, because that’s what it was – a short squeeze of the most shorted names…
… was the market’s realization – helped by our explanation yesterday – that a recession means the Fed will end its hiking cycle much sooner than previously expected, most likely some time around the mid-term election…
Read More @ Zero Hedge HERE
