The Russell 2000 just surged out of the gate to a new record intra day high…
Yeah, yeah we know the ‘narrative’ – Small caps are more domestically-focused and so are ‘immune’ to the Italian crisis, thus a safe-haven. There’s just two things…
1. US GDP growth was just downgraded and consumption growth plunged – right before this melt-up in ‘domestic’-focused stocks; and ,
2. Small Caps are much more dependent on credit availability to maintain their operations… and the cost of funding those ‘domestic’-focused operations just exploded…
And so what is really driving this morning’s panic-bid for Small Caps is easy… another massive short-squeeze…
PPT?
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