Nervous Bears Deserve All the Credit

Over the course of this bull market, now entering its sixth year, stocks have seldom stumbled for more than two consecutive days. Credit nervous bears, who have grown increasingly eager over the years to cover shorts for piddling gains.  Although few things in life are certain, we know for sure that one of these days they are going to cover their entire short positions on a day stocks are falling hard, only to realize a few days later that the avalanche had only just begun.  Another mistake they will make is that, when attempting to short anew, bears’ offers will be stranded by rallies that don’t quite reach their anticipated heights.  Will yesterday’s feeble short-squeeze turn out to be exactly that? If the question were that easy to answer, we’d all be rich.