IWM - The Squeeze That Sent Stocks Soaring Created A Massive Illusion
2024-07-21 06:15:00 ET
Summary
- Market breadth broadening illusion due to gamma squeeze in small-cap stocks.
- Steeper yield curve led to regional banks rallying, not small caps.
- Short squeeze and mechanics of IWM basket buying underlying stocks contributed to the surge, likely temporary.
A lot has been made about broadening market breadth this past week, but when digging deeper, it wasn't that the market was broadening out; it was just a giant squeeze. By the end of the week, most of the surges from earlier in the week were either wholly or almost gone....
The Squeeze That Sent Stocks Soaring Created A Massive Illusion