LOLZ!

More concerning, though, was the fact that the greatest volatility stocks contained mostly financials and a few retail stocks with a smattering of other sectors represented. That grouping had a range of returns of 50-100% and on average was up almost 60%. What this says is that much of the recent rally was made up of the kind of stocks that the very active quant funds had been shorting. This created a need to exit short positions (also known as a short-squeeze), which in turn pushed shares higher, creating the need to continue to cover positions that moved higher than the quant models would allow. The process repeated itself over and over, causing many of the riskiest stocks with the worst fundamentals to overshoot most analysts’ target prices by a wide margin.