CNBC Madness of money Host Jim Kramer has warned merchants that short positions in NVIDIA and Apple giants may be a trap with the market. Hedge funds are still struggling with the sudden rise in the market from last Wednesday, as many short merchants were liquidated when US President Trump stopped several countries for 90 days.
“Nvidia and Apple are so brief that I do not think the short pants will play their hands first“Publish Cramer in X Monday.
“They will allow them to gather and beat them again. This is the only way they can get out of this chaos because they can cover after they are slightly.“
The short pressure sees that the market enters chaos
According to Goldman Sachs’s main brokerage data, hedge funds collected a record number of short bets on American stocks before the trading session last Wednesday.
Many merchants believe that there may be huge economic repercussions from the Trump tariff. But the stocks rose higher, as the administration went unexpectedly some of its threats.
The hedge funds were forced to collectively cover, which sent the S&P 500 an increase of 9.5 % in one day, its third largest gain since World War II. For both Goldman, the most formulated shares through more than 12.5 % increased when traders rushed to relax on situations in classic short pressure.
“You cannot ride the step. When you see a short person, the exit doors become very small because of these crowded dealsJeff Kilburg, CEO and CEO of KKM Financial, said.
Looking at the pre -market session on Monday, NVIDIA and Apple Equits did not move less than its lowest level for 5 days. According to Google Finance data, the former has witnessed an increase of 26 % since April 8, while the latter increased by 12.3 % at one time.
Church He says The stocks will decrease again to motivate the sellers on the open to try their luck again.
OPPENHEIMER trading office on Whipsaw in the technical stocks “Extreme”, saying that the height was not only driven by the short cover and “real buyers add to half the quality.”
Wednesday pool It was also an unusually liquid liquidity of the market. Goldman Sachs reported that the depth of the E-MINI S & P 500 Futures, a market liquidity measure, has an ever level of two million dollars on Monday.
The institutional funds also bought long only in technology shares during the last three hours of Wednesday, according to Bank of America.
However, many traders are due to the size of the march to the collective to relax in short positions.
“Pain on the short side is clear“Note one of the traders.”This was more than just a technique, and the purchase of panic was.“
The markets have declined the next day when merchants bounced into the constant economic threat of high definitions and uncertainty in trade. However, like the MAD Money host, analysts say short pressure may end.
“Short coverage away from completionThe Bank of America’s Trading Office was written. “There is no shot in the market incomplete in less than three hours after seven weeks of reducing the leverage and 20 %+ the negative aspect of the SPX index“
A short march of its highest levels in several years
Cramer’s thesis support, Nasdak Data He explains that on the date of the settlement of March 31, 2025, the total short interest through 4,765 securities listed in NASDAC reached 15.75 billion shares, an increase of 15.66 billion weeks two weeks ago. The number is 2.14 days of average daily size, up from 1.88 days in mid -March.
The Nasdaq Global Market has witnessed 13.07 billion shares, which was shortened by 3,140 securities, with an average daily size to 2.64 days. The NASDAC’s capital market has recorded 2.68 billion shares that were shortened in 1,625 cases, which is a noticeable rise.
Even with the recent gatherings, the Haboodian bets remain great, and traders will rely on tightening the rope between the commercial policy of the United States and China to continue more market fluctuations.
Goldman Sachs says that nine out of 11 sectors out of 11 S & P 500 were sold last week, while seeing financial statements, technology and consumer appreciation for the heavier external flows. Selling in financial statements was the fastest since January 2021 and the second highest ever.
“Less prices were removed from huge sales from many angles of our privilegeNote Pasquarilo. “People only enter into a self -protection situation“
At the same time, S& P 500 hiking To 5,419.04 on Monday, by 1.81 % or 95.31 points from the previous trading session. Over the past four weeks, the index is offered by 4.51 %, while its performance on an annual basis reflects an increase of 7.06 %.
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