Short-Covering Bears Remain Their Own Worst Enemy

After Friday’s wilding spree, it remains clear that shorts are still their own worst enemy. DaBoyz have manuevered index futures moderately lower Sunday night, suggesting they are trying to prime a Monday morning short squeeze. However, it would seem lately that only marginal new highs are needed on a given day to somewhat exhaust panic buying by bears. If the pattern holds and stocks are lower after the first hour or so, brace for a possible washout.