Institution: Short squeeze will help boost the S&P 500 index rebound.
Scott Rubner, head of stock and stock derivative strategies at Citadel Securities, said that record-breaking consecutive short positions are at risk of forced liquidation, as hedge funds and systematic trading strategies prepare to push for the next round of buying. The U.S. stock market is poised for a rebound, as one of the largest short positions in U.S. stocks is considered. "Considering one of the largest short positions we have seen in U.S. stocks, if geopolitical tensions ease, the conditions for a rebound will be very favorable." He pointed out that the current situation has made the market extremely sensitive to the next positive catalyst, but he also caution that this is not yet a call to "buy stocks today."
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