Short sellers are in shambles.
They keep clinging to their fairy tales about recessions and market crashes instead of just participating in the bull market like normal people.
You’re watching this, right? I’m not making it up.
Week after week, the media parades around billionaires to try to scare you out of your stocks. These folks feed their favorite gossip columnists an endless supply of fear and clickbait.
If you just turn off the noise machine, ignore the “articles,” and focus on actual price action, you’ll see what’s really happening.
You’ll stop getting caught up in whatever the Crisis of the Week is — Trump, tariffs, or whatever new “debasement” narrative they’re peddling.
They’re getting creative. I’ll give them that.
Short Sellers Are Bad at Their Job
It’s fun watching short-sellers blow up. It’s right at the heart of what we do here at TrendLabs.
Remember, if you’re long a stock, you’re only promising to be a seller one day. But if you’re short, you’re a guaranteed future buyer.
Here’s a great chart from the Financial Times showing how the most heavily shorted stocks are outperforming the rest of the market.
Shorts are getting smoked:

What’s even funnier is how these same short sellers — who’ve been consistently wrong — are now blaming retail investors for their losses.
Instead of admitting they misread the market, they’re out here making excuses.
One short seller actually said, “Ever since 2020, we’ve all been waiting for the market to become more rational, and it hasn’t. It’s gone up, up, up, and up.”
Another complained, “There’s a mania in multiple corners of the market — crypto, nuclear energy, anything with AI or data centers. For short sellers, there are just fewer places to hide.”
Notice the pattern? They’re not just wrong; they’re lying to themselves.
The reality: 40% of S&P 500 stocks are down this year. So when they claim there’s “nothing left to short” that’s simply not true.
My friend Ben Carlson put it perfectly: “One way to view this chart: Speculation has gone off the rails. Another way: Hedge funds are really bad at picking which stocks to short.”
Based on actual math, Ben’s 100% right.
Tech Stocks Crushing Short Sellers’ Dreams
It should come as no surprise that Technology stocks are the ones exposing bad short-sellers the most.
It’s a bull market — and in bull markets, Tech leads. Always has.
If you go back and study every major bull run over the past century, you’ll notice the same pattern: Technology is almost always a top performer and a leadership group.
The fact that Tech is leading this one shouldn’t surprise anyone paying attention.
Take a look at the performance of the most heavily shorted sectors.
The only group actually down this year is Consumer Staples — which is exactly what you’d expect to see in a healthy bull market.
Everything else — especially the risk-on, growth-oriented sectors — continues to rip higher.
And that’s precisely what’s happening again, right now, in real time.

Humans Making Poor Choices
I’ve learned over the years that it’s much easier to make money by being slightly less stupid than everyone else rather than trying to be the smartest person in the room.
Humans make bad choices — and they do it consistently. Betting on that pattern has been one of the most reliable strategies out there.
Take this, for example: According to Bank of America’s latest survey, 60% of global fund managers now believe stocks are overvalued.
That’s a new record high.
Perfect.

As investors who own stocks — and want to own more — this is exactly what we want to see.
If everyone thought stocks were cheap, that would be the problem. But when most investors think stocks are too expensive, that fear feeds on itself.
It reinforces the negativity pumped out daily by the glorified gossip columnists masquerading as financial journalists — and it creates the exact wall of worry that bull markets love to climb.
Every short squeeze, every record high, every wave of forced buying — all of it is fueled by fear.
Eventually, the short sellers will disappear entirely. The pessimists will be extinct.
That’s when shorting stocks will finally become the best trade again.
But today isn’t that day.
Stay sharp,
JC Parets, CMT
Founder, TrendLabs