Bad news fully digested leads to a "good news" effect 👇👇
When everyone is aware of the bad news (tariffs/geopolitical conflicts), this has already been priced in by the market. Instead, a mindset emerges that "no worse news is good news," triggering a retreat of short sellers.
Money is more ferocious than logic
The Federal Reserve may not officially lower interest rates, but in reality, it quietly injects liquidity by reducing the balance sheet (increasing interbank liquidity), and with more money, asset prices naturally rise.
Too many shorts will lead to a backlash
When bearish positions are overly concentrated (very low long/short ratio), a slight rise in the market will trigger short covering, algorithmic trading will follow suit to buy, creating a vicious cycle of "the more it rises, the more it squeezes shorts."
Anti-humanity trap
When 90% of people can't find a reason for the rise, the remaining 10% of buying can stir the market. The market is specialized in treating all kinds of "overthinking."
