EDITOR'S NOTE
The S&P 500 crept closer to a record but still fell short on Tuesday, rising by 0.02%. Meanwhile the Dow Jones Industrial Average lost 30.42 points, landing at 34,599.82. The outperformer among the three major indexes was the Nasdaq Composite, which rose 0.3% – lifted by the latest meme stock fad: Clover Health.
Clover was the biggest gainer in the Nasdaq, rising by more than 85%. Earlier in the day, the share price doubled. Retail traders on Reddit’s WallStreetBets forum contributed to the frenzy, as about 720 million shares traded hands by the end of the day. 
Novice investors aren’t the only ones watching Clover.
Short sellers have also ramped up their bets against the company. Over the last 30 days, the number of shares shorted rose by about 25%, according to S3 Partners. These investors are down $502 million in mark-to-market losses since today’s rally, the analytics firm found.
“Short sellers look to be shorting into a rising market and an overheated stock, looking for a pullback off of these elevated levels,” said Ihor Dusaniwsky of S3 Partners. “But shorting into a rising market produces mark-to-market losses, and today’s price spike has resulted in big red numbers for short sellers.” TOP NEWS
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