Short-covering bears have turned the stock market’s recent selloff into a launching pad. Every time the broad averages inched higher yesterday they shorted anew, as they’ve been doing, leaving themselves on the ropes yet again when stocks ended the session near their highs. At this point the Dow Industrials and S&Ps are all but guaranteed to test their old highs, which is what it will take to knock bears out of the game. Thereafter, we’d be tempted ourselves to short this flying pig if the expected head-fake goes high enough to suck in ‘everyone’.
