By: Steve Smith
Since its Dec. 24 low, the market has enjoyed a near-straight line 20% rally. But, it seems to be coming from the bear’s hides rather than bull buying. Some data suggests that the recent run-up is just one big short squeeze.
During the end of year decline, the market had gone from ‘buy the dip’ to ‘sell the rip.’ Since the low, there have barely been any dips to buy, indicating that not only were shorts being forced to cover, but many money managers and hedge funds found themselves woefully underexposed — scrambling to get back, regardless of price.
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