Monday’s rally came despite short interest being near the lowest level in at least a year. Roughly one-quarter of shares available for trading are currently sold short, according to data compiled by S3 Partners. That compares to a peak of more than 140% in January.

“Shorts will continue to be squeezed out of their positions as GameStop’s stock price continues to trend upwards,” said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.

Shorts sellers are down nearly $6 billion in year-to-date mark-to-market losses, including $609 million in Monday’s trading alone, Dusaniwsky said by email.

Eoin Treacy's view

The rebound of reflation plays and retail investor favourites is partly a response to short-term oversold conditions. It is also because $1.9 trillion is still a lot of money, even after a decade of printing.

$1400 for individuals and each child as well as extended benefits the unemployed means many families will see bumps of several thousand dollars in the nest month.  According to this calculator a family of four with an income of $70,000 per annum would receive a payment of $5,600 or 8% of income. https://www.washingtonpost.com/graphics/business/coronavirus-stimulus-check-calculator/



GameStop and AMC Entertainment both rebounded. . That also helped the ARK Innovation ETF to bounce from the region of its trend mean today.

The broader perspective is that global reflation remains a powerful medium-term theme. Boeing announced a surprising bump to orders today and remains on a recovery trajectory.

Germany’s DAX Index broke out to new highs yesterday and extended the advance today.

The Italian FTSE/MIB Index is approaching the upper side of a 12-year base formation.

The Topix Banks Index continues to rebound from the most recent test of the two decade lows.

There are two themes here. The first is that there is a source of new money hitting retail wallets

The second is the global economy is bouncing back. That’s a much bigger story. Any time bond yields stop rising, the stock market tends to jump.