Wednesday, February 17, 2016

Wall Street Imploding: Biggest Short Squeeze Since Lehman

...was compliments of overleveraged hedge funds that are now imploding en masse...suffice to say today's "contrarian" action didn't help the rest of Team Groupthink...

ZH: Feb. 17, 2016
Quant Fund Carnage Deja Vu

Long/short hedge funds got obliterated today as their favourite shorts aka. cheap junk, got moonlaunched due to Quant Funds unwinding their short positions.

In other words, the biggest short-covering rally since Lehman was all junk that is now in no man's land ready to crash back to earth since there's no marginal buyer for this crap.

Junk miners (3 day rate of change lower pane)

Junk banks



Revenueless Biotech

Energy Partnerships (MLPs):

Energy Exploration companies left for dead:

All of which puts this into perspective...
Realized Volatility: