Record shorts trapped as market rallies on Iran deal and Goldman upgrades S&P target — ride the squeeze higher
Traders have bet a record amount of money against stocks — but the market is rallying anyway thanks to potential U.S.-Iran peace. At the same time, Goldman Sachs just raised its S&P 500 year-end target to 8,000, up from 7,600, citing booming earnings growth.
Idea
When short sellers are at record levels and the market keeps going up, it creates a classic short squeeze — those bearish bets have to be unwound by buying back in, which pushes prices even higher. Add to that Goldman Sachs raising its S&P 500 target to 8,000, a geopolitical de-escalation lowering oil prices, and all three major indices rallying in unison. That's a lot of fuel for a continued run. Buying a broad index ETF like SPY or QQQ lets you ride this momentum without needing to pick individual winners.
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News sources
- Goldman raises its S&P 500 year-end forecast. It's for one simple reason — CNBC
- Stock market today: S&P 500, Dow, Nasdaq rise, oil falls amid US-Iran talks — Yahoo Finance
- Short Sellers Are Betting Record Amounts Against Stocks. But the Market is Rallying On a Potential Deal Between Trump and Iran. — Yahoo Finance