FXCM enjoyed a huge rally as short sellers abandon their positions
FXCM Inc (NYSE:FXCM) closed 41.2% higher today, at $15.74 -- and earlier hit a seven-month high of $19.74. Of course, the stock is still sitting on a 90.5% year-to-date loss. The shares took a nosedive in late January, after the Swiss National Bank made a surprising policy change that sent its currency soaring 41% against the euro, leaving FXCM with a negative $225 million equity balance. FXCM was later saved by a $300 million bailout from Leucadia National Corp. (NYSE:LUK).
Today's rally comes on the heels of data showing that short interest on FXCM fell by 27% in the most recent reporting period alone. In fact, short interest now accounts for a relatively modest 8.2% of the stock's available float -- which could be covered in just one day of trading, at average volumes.
However, today's surge didn't occur on average volume. North of 6.2 million FXCM shares changed hands today -- an amount that arrives in the 92nd annual percentile, according to Trade-Alert. In other words, the remaining FXCM Inc (NYSE:FXCM) bears may have already stampeded for the exits.