Daily Brief - 🌩️ So.Many.Short.Sellers.

TLDR: An army of short-sellers insures the market from any big down drop.

We’ve never seen so many short bets since 2003.

The first wave piled in because of Ukraine. The second wave because of inflation. The third wave came in because of bank failures. The last wave piled in to bet on the debt ceiling.

But with so many shorts, it’s extremely hard for the market to fall. Who is going to sell, when everybody has sold already?

And if the market does fall eventually, all these shorts will buy to close their bets: it’s an immense bid that holds prices up.

Long story short (pun intended), until the shorts unwind their positions they provide a degree of insurance from large drops in stock prices.

What stocks are doing well today?

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