Here’s some Tuesday afternoon humor for you.
So the latest CFTC positioning data (out last Friday and current through last Tuesday) showed that specs (so basically, hedge funds) went all-in-er-er on bearish small-cap bets to levels last seen in September of 2014.
Specifically, specs were net short Russell 2000 minis by ~71k contracts on April 18. That marked 11 out of 12 weeks that bearish positions rose….
(BBG)
Well, that turned out to be a really – really – unfortunate bet…
But before you get too excited about the apparent short squeeze and the accompanying run up to record highs in small-caps…
… just remember what you’re buying…
(Goldman)
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