Below is a chart and brief excerpt from today's Early Look written by Hedgeye CEO Keith McCullough.
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Covered shorts? Oh yeah, baby. That’s how we professional short sellers do it. We put a little Sauce Hockey on it, trade it, and keep scoring. We knew that JP Morgan was going to issue SBA (is it Small Business or Small Cap?) loans to their banking clients (even though they’re public companies!). We knew we’d get another “the bottom is in” bear market rally in the Russell to sell into too. Despite Ruths Chris (RUTH) and the ole Potbelly Corp (PBPB, great name for a gov bailout corp) getting those loans from the Old Wall this morning (see Howard Penney’s tweets/notes for the details), I’ll happily re-short the Russell (IWM) again when my risk management signal says go. Since The Cycle peaked, the Russell 2000 has crashed -30.3%. That means that The Connected ones only need to get that sucker +42% (from here) to get those who made the super-late-cycle investment mistake of buying levered small caps back to break-even. |
