Powell Unleashes Historic Hedge Fund Devastation, Margin Calls Galore Into The Close

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by Tyler Durden
Thursday, Dec 14, 2023 - 02:35 AM

Looking at today's epic post-FOMC market meltup, one may excused to believe this was the best day for investors in a long time. Well, it wasn't, and in fact for hedge funds and most pair trading long/short investors, today was nothing short of a historic bloodbath with a barrage of margin calls hitting at the close.

Why? Because while stocks indeed soared, and the Dow closed at a new all time high rising above 37,000 for the first time ever, the stocks that made up the most popular shorted baskets soared about 7 times more!