Monkey See, Monkey Do – Short Covering Rally Gone Wild

Monkey See, Monkey Do – Short Covering Rally Gone Wild According to Miller Tabak’s chief economist Wednesday’s rally was due to “Equity investors appearing to react to a positive outlook being reflected by Ford’s decision to boost output – itself a sign that a Fed tapering would arrive as the economy is strengthening, no weakening.”  Seriously? Did anyone bother to check volumes?  If there was a flood of buyers pouring into the market on Wednesday they all must have been trading somewhere else. I doubt the buyers on Wednesday were investors seeking to jump in on all stocks because Ford’s decision to increase production in the 4th quarter.  It appeared more like an avalanche of basket buying of stocks.  Did anyone notice that when the algorithmic traders turned on computers (30 minutes into the session) they had one objective – cover shorts.  In the broader indexes I have been tracking the development of a “B” wave rebound rally within the ongoing 4th wave de

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