"Shorted" Groups Are Strong Performers--So Far
The sword-catchers are out there. There is a rotation going on: out of tech, pharma, commodities and into retail, financial.
Funny day as it's another one of strong performance from the two most heavily shorted groups--financials and retailers. Again, clearly related to short covering, because these are the two most heavily shorted groups on the Street.
At the same time, European banks are weak (counter to the U.S. bank trend) on concerns that the ECB is behind the curve on cutting rates.
The commodity rout continues, with stocks in metals, oil, and chemicals all down.
Finally, healthcare lousy for a second day in a row. Whatever happened to "rotation" into "safe" sectors?
Pfizer had great numbers; the stock is up $0.14? Huh?
Not clear if any of this will last. I’m already getting calls from people who want to short financials midday.
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