If the Dow can get short-squeezed 400 points on any given day, there’s no reason why it can’t have two of those days back-to-back. Let me repeat this: It’s no time to be a hero. If you have a strong opinion about where the broad averages will be trading in a week, do yourself a favor and move to the sidelines. The purpose of rallies like the one we saw yesterday is not merely to cause bears pain, but to turn the very best traders — i.e., those with brains, guts and conviction who are usually right — into chop suey. I’ve seen them carried off the trading floor on gurneys. No kidding. Let short sellers beware!
