Everyone "knew" that the suckers would be flushed at the end of the customary 1st quarter (401k) Rally...
And that may have been the problem...to many "smart" people were shorting the sucker rally...
(But Hey, if you can't short a "sucker rally" what can you short!)
The market masters had other plans...
With that many people going short...the market could not go down until the shorts were flushed out of the market too...
Hence the Mother of All Short Covering Rallys we have going now...even in the face of dismal news and economic data...! Of course that's the kind of data that the shorts thought they could take advantage of...but there where just too damn many people doing that game plan...!
This rally has been so powerfull that massive short covering is the only thing that can explain it... My hunch is that many hedge funds were caught again...on the wrong side of a bad bet that seemed "clever".....perhaps too clever by half!
You'd have to assume that the world had taken leave of it's senses to find any other explanation for the rally we have just seen...
I suspect the real sucker flush will kick in shortly after the new quarter starts...
Sell in May?...you bet!
This year more than ever...
