You might or might not know that there was a big stock market rally yesterday. It came after the Fed announced (not quite this way) that they’re going to go on printing money to keep things all fluffed up. This made people optimistic about the future, and they wanted to buy stock. It also caught the pros by surprise, as they were expecting the Fed to be more restrained, and for the market to go lower.
These pros (like hedge fund managers) had to buy stock to cover their short positions. This short-covering meant that the pros lost a lot of money.
So much for the background behind the quote about this situation that Larry copied down for me, from Art Cashin, who directs floor operations for UBS (an investment bank) on the NY Stock Exchange:
“There’s enough blood in hedge fund alley to cater Dracula’s daughter’s wedding.”
I think there are poets who might be willing to sacrifice one of their beloved cats for a metaphor like that.