Wait a minute. Last Friday, June 29th, was the last trading day of the month. It was also the last trading day of the 2nd quarter. AND it was the last trading day of the first half of 2012.
Plus, in the days leading up to Friday, markets were suffereing quite badly, so the smart bet must have SEEMED to be, to be – or stay – short the market.
So how many people were short exactly, and how many had to scramble to cover their bets at the first snippet of what looked like good news? And what part of that was responsible for the market surge, Dow 2.2%, S&P 2.49%?
Look, when the DAX is up 4.33%, the CAC 40 4.75%, and Spain and Italy 5.66% and 6.59% respectively, everyone should take one step back, scratch their heads and realize those are not normal numbers, not even in a major bull market.
Ergo: everyone and their pet hamsters were covering their shorts. Sort of like the opposite of casual Friday.
Next week will be interesting to watch. Be careful out there.