2 Painstaking Reasons The Market Can Expect A Midlife Crisis

2 Painstaking Reasons The Market Can Expect A Midlife Crisis by Greg Silberman

In our last market note (How to Unleash a Dragon) we commented that a rally in March was expected given the degree of selling in January and part of February.

Midlife Crisis

The magnitude and breadth of the rebound has surprised us but short covering rallies are normally quite breathtaking.

Our suspicions of a short-covering rally were confirmed in a note from JP Morgan’s Prime Brokerage unit which read:

“JPM’s prime brokerage team saw heavy short covering across all sectors adding additional upward...