US Stock Market Move | Continuation of the bullish trend, Avis Budget Group, Inc. (CAR.US) surged over 10% and hit a new all-time high. It has skyrocketed 360% within the month.

On Tuesday, Avis Budget Group, Inc. (CAR.US) continued its short squeeze trend, opening with a sharp rise of over 10% and hitting a historical high, with a cumulative increase of over 360% within the month. The frenzy in Avis Budget Group, Inc.'s stock price began with an epic short squeeze in early April. Pentwater Capital Management suddenly announced a large-scale position in Avis Budget Group, Inc., causing their stake to soar to 22%. Combined with long-term major shareholder SRS Investment Management already holding nearly half of the shares, the available chips for trading in the market were extremely limited. This highly concentrated chip situation forced short sellers, who were originally betting on the stock price to fall, into a dilemma. As the stock price rose steadily with the help of funds, the shorts were forced to buy back the stocks at higher prices to cover their losses, further fueling the stock price spiral. Matt Maley, Chief Market Strategist at Miller Tabak + Co., believes that the recent surge in Avis Budget Group, Inc.'s stock price is mainly driven by short sellers rushing to cover their losses. He stated, "This trend is not caused by fundamental improvements, but is a signal of market bubble resurgence." "The market may be entering a period of adjustment, and Avis Budget Group, Inc.'s stock price may experience a significant decline as it returns to reality."