By Nigam Arora
Many investors not familiar with the mechanics of short squeezes are confused by the strength of the stock market rally that began after the S&P 500 hit a coronavirus low on March 23. Short-squeeze-related actions were the force that unleashed the strong rally.
As the market continues to rally, the odds that the stock market will set a new record within the next two months are rising. I see it as 55% now, up from just 30% on May 13. As impressive as that rapid shift is, I will wait until the odds reach 70% to my call.