Hedge funds and other short sellers are betting against plenty of stocks even as the market sets new record highs.
Many short sellers have pulled back since the start of the meme stock craze, but the practice of betting against stocks is still around.
But with interest rates falling and stocks broadly climbing this week, those targeted stocks could be candidates for a so-called short squeeze.
In certain cases, this can create a feedback loop where the extra buying pressure forces other short sellers to do the same.
That performance could make them more likely to have a short squeeze in the near term, though the exact financial position of those short sellers is unknown.
Persons:
Citron Research, Nick Wells
Organizations:
Arbor Realty Trust, Medical Properties Trust, Federal Reserve, Comstock Resources, Madrigal Pharmaceuticals, GameStop
Locations:
Arbor, U.S