As one veteran trader told us, this massive short-squeeze came "out of nowhere," seemingly driven by oil-headline-induced algo momentum ignition. Goldman's "Most Shorted" stocks are up a stunning 6% in the last 2 days - the biggest 2-day surge since Oct 2015 as Credit Suisse noted earlier there is a "lot of pain being felt out there on the short side."
The face-ripping surge has sent "Most Shorted" stocks back into the green for the year...
However, 5 of the last 6 times that shorts have been squeezed this much this fast, stocks have stalled dramatically.