Nomura’s McElligott On ‘Unprecedented’ Short Covering And A ‘Perverse’ Local Risk
"Futures positioning [is] now mattering in a big way for US Equities", Nomura's Charlie McElligott wrote Monday, flagging massive covering in what was a 0.1%ile Leveraged Fund net short position. This "unprecedented cover" (as Charlie dubs it) was +$23.9 billion across S&P, Nasdaq and Russell futures. Nomura calls the buy/buy-to-cover in Nasdaq and S&P futs "particularly extreme", in the 100th%ile and 99th%iles, respectively. "The surge in short-covering comes as traders wrestle with w
2 thoughts on “Nomura’s McElligott On ‘Unprecedented’ Short Covering And A ‘Perverse’ Local Risk”
Better earnings is a perversion the labor market/consumer can live with.
the whole market is one giant perversion—see James Grant in WSJ