These massive short-covering rallies are caused by sociopaths on Wall Street putting short-term profits ahead of risk management. The longer these fake rallies last, the more devastating the outcome, but that's someone else's problem...
First, it's another "bullish" indicator:
"The Weekly Leading Economic Index (WLEI) uses fifty different time series from these categories: Corporate Bond Composite, Treasury Bond Composite, Stock Market Composite, Labor Market Composite, Credit Market Composite."
Bears beware, the same JP Morgan that said to "sell all rallies" is now saying that the short squeeze isn't over. Short interest is at July 2008 levels, due to risks commensurate with or beyond that era, but Team Groupthink is focused on the fake "rally". Because the daily P&L always comes first for Team Groupthink. And when bad news really is bad news, they can just chalk it up to another "Black Swan" event: "No one who's marked to market saw that coming".
ZH: March 5, 2016
"The next move higher in this bear market squeeze could easily take the S&P500 to new all time highs."
MW: Jan. 11, 2016
"Bearish JP Morgan Says Sell All Rallies"
ZH: Jan. 25, 2016
"JP Morgan: Don't Overstay Your Welcome In This Bounce"
Let's see, sell at the bottom in January and then buy the most overbought market in 12 years at the top in March. Thanks for the advice. I had no idea how it's done when you manage other people's money.
This suggests that shorts have largely covered...
Equity Call/Put ratio:
Nasdaq / S&P ratio
"Most shorted" aka. High Beta:
This is the who's who of shit stocks that just went parabolic:
"My money's all in cash, it's only yours that's at risk"