The biotech space may also be rallying as short traders turn bullish on growth sectors. Short interest in U.S. equities recently rose over $1 trillion, an eight-year high, reports Dani Burger for Bloomberg.
JPMorgan Chase & Co. analysts led by Nikolaos Panigirtzoglou argued that bearish bets are so rampant that they are skewing the market’s perception to news in favor of rallies.
“There’s an enormous demand coming,” Thomas J. Lee, managing partner at Fundstrat Global Advisors LLC., told Bloomberg . “Retail investors are about to put a lot of money into the equity markets because they’re trend followers and the S&P has had two positive quarters in a row. Funds can’t keep a trillion short position, larger than March ’09.”
BioShares Biotechnology Clinical Trials Fund