…is more important than the news itself. Right?
I was very surprised to see the market rally after the pre-market plunge caused by the weak retail-sales report Friday morning. It reminds me of how the market rallied in 2009 every time a terrible Non-Farm Payrolls report was released. Shrugging off bad news is a hallmark of bull markets. And so is recovering from a morning down-gap.
I imagine that if the shorts are taking profits, the market could continue rallying for quite a while. If everybody is short, and everybody starts to take profits, then everybody is buying, right?
The question though is, will the short-covering continue, and if so, how high will the retracement be? Will the bears want to ring the register before earnings season begins?