Morning 1-28

Sell you Winners to Cover your losers The Theme of this week.

 Spx, Nasdaq and Dow closed yesterday with the biggest losses since late October, SPX now down a smidge for the Year .14%. Gamestop flirting with $500. The short Squeeze not just a U.S. phenomenon Bloomberg reporting squeezes happening Worldwide from Poland to India. This morning Sundial Growers a Canadian Weed company being discussed as a Squeeze target.

 How does this affect the big Boys? Well, they are slashing their Equity exposure at fastest rate since 2014 as they sell the winners and buy the losers one of the reasons for the brisk sell off yesterday From Bloomberg. 

 “Heavily shorted companies across the globe are seeing their shares jump as traders race to bet on where the flood of retail money might head next. There is a long list of potential targets – companies that have short-interest levels above 30% of their share float – which have seen rallies in recent days. Shares in GameStop Corp. surged again in premarket trading, moving above $500 at one point. For hedge funds, the attack on their short positions is proving painful, and moving the wider market as they slash their equity exposure at the fastest rate since 2014.   And to some the trading environment this week from … @PriapusIQ We are at that stage where just the fear of a rumor that #WSB may target a stock or asset is enough to put a bid into it.

 Big tech Earnings tesla reported Lower than expected profit -5%, Apple’s Quarterly revenue topped $100B   but stocks still traded lower by 1-3% post earnings warned of Significant uncertainty for 2021 stock off a bit.  What isn’t off a bit is Vix   highest close in a few weeks but what is getting everyone’s attention is the Upside calla activity that took place yesterday per IFR news open interest in 55 calls +84k   60 calls +80k.

 Hmmm Stocks in China taking on the china as Rumblings and pricing of possible policy tightening causing a bit of angst and profit taking CSI 300 -2.7%, Shaghai comp -1.9% Hang Seng -2.5% and iron ore lowest close in 6 weeks per Mizuho “The PBOC is playing a big part in the stock market jitters. China stocks slumped on Thursday hit by investor concerns about policy tightening. Shanghai Composite fell 1.9% to 3,505.18, its lowest closing since Jan 4 and biggest intraday fall since Jul 24. The blue-chip CSI300 index was down 2.7%, its biggest drop since Jul 24. One-year interest-rate swaps, a gauge of trader expectations for future liquidity, rose 5 basis points to 2.64%, in line for the highest since Dec. 7. The rate has surged 17 in the past five sessions, the longest stretch since July last year. The overnight repo rate increased to 3.05%, the highest since March 2015.


 Nasdaq still offered down 100 handles but rallying a bit post GDP number Russell in the green today tour market leader, Spoos sideways to higher. Crude small bid, Bitcoin steady Robinhood not allowing new purchases in all the high-flying short squeeze names   so spoos and Nasdaq running.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.