Since the beginning of December, the Russell 2000's most-shorted index has outperformed the Russell 2000 by a magnicently squeezed 500bps! How much longer can it last? No idea but once again the worst becomes first in this topsy-turvy market.
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Perhaps the rip into QE3 was the 'equilibrium' moment and we are reverting to that now - which suggests that the squeeze has fewer legs from here...
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Charts: Bloomberg