Short covering has been in evidence since the end of December and still hasn't run its course. After near-record levels of investor pessimism last month, the major averages established a bottom and commenced a recovery rally which is still underway. While many bears believe the rally is approaching its end, the evidence we'll discuss in today's report points instead to an even bigger short squeeze in the coming weeks.
If there was any question that the broad market recovery now underway is more than just a "dead cat bounce," the remarkable performance of the financial