Trader Who Correctly Called The November Meltup Turns Bearish: "Short Squeeze Almost Over"

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by Tyler Durden
Monday, Dec 18, 2023 - 02:35 AM

When stocks were tumbling in late October to the lowest level in 5 months, few dared to stick their necks out and call the bottom (in fact, quite the contrary, there was a huge pile up of the usual momentum chasers predicting a total collapse in the S&P in the next few weeks). However, UBS desk trader Rebecca Cheong was not one of the doom echo-chamber penguins, and as we reported on October 20, shortly after the 10Y briefly traded above 5%, she called the bottom in the market writing that "treasury bonds hit capitulation on Thursday and it should mark the end of the current multi-asset unwind cycle that started on Aug. 1."

As we summarized next, "her conclusion: "I like to buy the dip today in Equities at this level" which with stocks at session lows, with buyback blackout period ending today, at the same time as the endless Fed chatterboxes enter a blackout period, is probably not a bad suggestion."

It certainly wasn't, and those who listened to Rebecca made an entire's year of profits in what has since become a "November to Remember", a month in which every risk asset exploded to the upside.