Last week, it was coffee speculators; this week it's Small Cap traders. Despite tumbling earnings expectations, the Russell 2000 surged to a new record high yesterday.
However, as Bloomberg notes, if there’s one thing hedge funds became persuaded of in the last few months, it’s that the rally in U.S. small caps was over.
That conviction is turning into a curse after the biggest three-day rally in four months sent the Russell 2000 Index to an all-time high Wednesday. The surge, possibly aided as President Donald Trump’s domestic growth agenda became known, came after short positions in a mini version of the contract among large speculators swelled to the most since September 2014.
So what happens next? Another leg higher?
The post Small Caps Surge To Record Highs As Spec Positioning Hits Record Short appeared first on crude-oil.news.