It's not just Goldman that is shorting the current "junk rally": this morning UBS prop trader Rebecca Cheong joined the bearish chorus (her note available to pro subs) and writes that despite the recent violent short squeeze (UBXXSHRT +43%), the Swiss bank's proprietary 4M Intraday Recovery Score (an index of discretionary, or unforced, risk appetite) kept falling until it turned neutral on Jun 18.
The reason why UBS is warning that a broader leg lower in the market is imminent, is because following all 3 similar significant Short Squeeze episodes...
