Short selling on historically the “go-to” shorts has slowed while discretionary longs are rising. According to Bloomberg, the lower appetite for shorts has been as a result of a cautionary approach against expensive or deadbeat entities by hedge funds ripped off by the Reddit crowd earlier this year.
In Europe, a short-covering frenzy has sent bearing bets collapsing
Hedge-fund longs are around the highest relative levels in years at JPMorgan Chase & Co.
The fall in short stocks are signs of the bullish mania propelling global equities to fresh records this month amid economic re-opening and big policy stimulus
The most-bearish bets have stayed long or at least neutral in 21 of the past 25 weeks, the most bullish stretch since 2018-National Association of Active Investment Managers.
Equity positioning has reached a fresh all-time high among discretionary investors.
Bearish investors are choosing to take shorts in the options markets, with bearish contracts on the S&P 500 having surpassed bullish ones in the past month.
The median short interest in members of the S&P 500 sits at just 1.6% of market value, near a 17-year low
