Stocks hit the ceiling

Thursday 19 June 2025

The Market Ear on a rapidly exhausting market.

Shorts stopped out

Recent equity strength has been fueled by underweight positioning and a brutal short squeeze. But signs of relief are emerging — UBS reports the strongest hedge fund deleveraging since March, with sharp short covering. Nasdaq short interest is now in the 25th percentile, showing just how much shorts have backed off.

Source: UBS

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About the author

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.