Anthony Scaramucci says the wild reversal in stocks was the start of an upswing as the bear market ends and short-siders give up

• Thursday’s wild stock reversal wasn’t a bear market rally and could be the start of a new upswing, Anthony Scaramucci told CNBC. 
• “I think this is the start of something new. I think there was full-blown capitulation on the short side yesterday and lots of institutional buying.”
• On Thursday, the S&P 500 closed above 2% after opening below 2%, only the fifth time that’s happened since 1993.

Thursday’s wild upside stock reversal wasn’t just a bear market rally and could be the start of a new upswing, according to Anthony Scaramucci, founder of investment management firm SkyBridge. 

After a hotter-than-expected inflation report Thursday, stocks opened sharply lower, then staged a massive rally. From intraday lows to highs, the Dow Jones Industrial Average saw a 1,500-point swing. Meanwhile, the S&P 500 closed above 2% after opening below 2%, only the fifth time that’s happened since 1993, according to Bespoke Investment Group. 

“We are, in my opinion, coming to the end of this bear market,” Scaramucci told CNBC on Friday. “This could’ve been a bear market rally, but I don’t think so. I think this is the start of something new. I think there was full-blown capitulation on the short side yesterday and lots of institutional buying.”

Across Wall Street, explanations for Thursday’s massive swing have included a short squeeze, stocks reaching technical lows that triggered automatic buys, and expectations that the Fed will front-load rate hikes, bringing the tightening campaign closer to its peak.

Scaramucci also pointed to other encouraging market signals, including the TIPS 10-year breakeven rate that’s now around 2.20%.

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That gauge measures the gap between 10-year Treasurys and Treasury Inflation Protected Securities (TIPS) and is an indication of inflation expectations over 10 years.

“We may look back in a three- or six-month period of time and say, ‘woah, that was the moment where people started to realize that things are gonna get better,’ [and] they’re gonna get better quicker than the bears think,'” Scaramucci said. “So I think we’re on the way to something new.”

This content was originally published here.