Trade Alert
Fading the post-Powell rally in shorted stocks
So Much For Tight Financial Conditions
As I noted yesterday (That Was Unexpected), Fed Chairman Powell’s claim that financial conditions had tightened significantly got pushback from market observers, including Sven Henrich below.
Powell: "Financial conditions have tightened significantly over the last year."
That's just false. They are looser now compared to when the Fed started.
During today’s continuation rally, another observer quipped that it’s as if Powell had announced quantitative easing yesterday. Some low quality names, including ones that may be at risk of bankruptcy, are spiking hard today. I took the opportunity to bet against one of them today. Details below.
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