Bears Once Again Are Their Own Worst Enemy

Bears gave it all back yesterday, doing all the heavy lifting for the bad guys with a short-covering binge that began less than an hour after the opening bell. The panic buying-spree recouped nearly all of the 200-point drop in the Dow that had begun the day. When will the “don’t” bettors learn to keep their cool?  Answer: Never, if more than two centuries of market history can tell us anything. Meanwhile, the ferocity of the swoon and the steepness of the recovery are instructive on the point of how much control the sleazebags who manipulate markets for a living have over short-term swings. All they had to do to trigger off the short-covering stampede was to take index futures down low enough overnight to exhaust sellers. They can do this without having to suck up much stock on the way down, ratcheting their bids lower to fill each new wave of market orders that comes in. The foregoing aside, they will be confronted on Tuesday with the same downside targets that obtained Sunday night. (In the case of the E-Mini S&Ps, that means 2309.50, about eight points beneath Monday’s low. It will remain viable as long as 2356.00 is not breached to the upside first.)