Bear Market Rallies are steep and impulsive...and the current one fits the profile...
Short covering Rallies focus on sectors that are economically weak (i.e. recession driven).......and this recession is about de-leveraging of banks and consumers and about weak production plans (materials and commodities), therefore those had to outperform the broad S&P500 (THE MARKET)
hat tip John MauldinSell in May in Bear Markets is obviously different than in bull markets. Pls see John's excellent post on this....
Bottom Line: Seasonal Factors supported by a short covering rally are lining up for a temporary seasonal TOP
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