General Discussion Topics, page-86935

From the WSJ article-

Short sellers who have incurred hefty losses are actively trimming their positions, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners. Investors betting against stocks have racked up $81 billion of mark-to-market losses on short positions this month through Thursday after accumulating $300 billion in gains in 2022, Mr. Dusaniwsky said.

Investors and analysts say the rally appears to be driven by a few things. Signs that inflation is cooling have stoked bets among investors that the Federal Reserve will pivot from raising interest rates to cutting them as soon as the second half of the year. That has helped risky assets across the board rise. Especially risky corners of the market, such as stocks with high short interest, have rallied even more. Analysts say that has likely forced short sellers to close out bearish positions to cut their losses -- resulting in what is known on Wall Street as a short squeeze.

"We're seeing a mirror image of the performance within the equity market. The worst performers last year have been leading this year," said David Lefkowitz, head of Americas equities at UBS Global Wealth Management. "It does look like some re-risking and short covering."

Investors will get their next update from the Fed on Wednesday, when the central bank concludes its first two-day policy meeting of the year. The Fed is expected to raise interest rates by a quarter of a percentage point, marking a slowdown from last year's pace.

Lets hope so....