Stocks are nicely higher today, so right off the bat, just about anyone who has any short bets are getting hurt today.
But then as you drill down the picture gets even uglier.
Small caps are having a huge day, so anyone who had been on the “stealth selloff” train is getting whacked.
Then you have the St. Joe — one of David Einhorn’s favoured shorts — which is surging on news that boardmember and well-known bull Bruce Berkowitz is proposing a reorg.
And then in the minor leagues of short-selling, anyone who bet last week against China Media Express Holdings — a stock that got slammed thanks to a short-seller research report — is reeling today after the CEO unveiled a point-by-point rebuttal of fraud claims. The stock is up over 10%.
Finally, throw in (yet) another big move in the perennially bashed rare earth stocks, and, well, you’ve got quite a sickly soup for anyone betting on the downside.