Unlike previous days when the surge in most shorted stocks – as they are doing this morning – pushed the broader market lower, on Monday bullish sentiment is everywhere, and after sliding as much as 1.5% at the start of trading on Sunday, Emini futures rebounded rising 1% following last week’s sharp selloff as a shift in the retail trading frenzy to silver drove up mining stocks and investors awaited manufacturing data later in the day.
At 7am. ET, Dow E-minis were up 233 points, or 0.78% and S&P 500 E-minis were up 37.75 points, or 1.02%. Nasdaq 100 E-minis were up 135.75 points, or 1.05%. The VIX slipped about 2 points on Monday, last seen just above 31, after hitting its highest since October.
Shares of Exxon and Chevron jumped 2% each after the WSJ reported that the chief executives of the two largest U.S. oil producers held preliminary talks in early 2020 to explore a merger, and may resume talks in the future. The most shorted names also jumped, with GameStop and AMC rising on Monday on top of their gains of nearly 400% and 278% respectively last week, when meme stocks dominated news on Wall Street last week, even as Apple, Microsoft and other corporate heavyweights reported record quarterly results. Focus now turns towards quarterly earnings from Amazon.com Inc and Google-owner Alphabet Inc on Tuesday to wrap up results from the so-called FAANG group.