The small-cap rally is fundamentally sound and sustainable, not a short-squeeze driven junk rally, as evidenced by non-heavily-shorted stocks outperforming heavily-shorted ones
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"BYD shares are down ~35% YTD, which we think is overdone considering the quality of ongoing improvement. We expect shares to react positively today."
"Verastem carries short interest near 21% of its float, so with the oncology group catching a bid, the setup was primed for a squeeze... ADC Therapeutics... With the shares crushed to about a dollar... a deeply oversold bounce met revived M&A speculation across the space."
"not-so-heavily shorted small-cap stocks are outperforming heavily shorted ones, which is a signpost of a sustainable rally. 'If this was a snapback junk rally where it was a short squeeze, it would be the inverse,' he said."