This short covering rally in the banks is simply incredible. It’s as if investors have completely lost their minds. Prior to every single individual bank earnings release there has been a massive 5%+ run-up followed by a sell the news type event. Do these people not understand that all of the banks are going to outperform their estimates due to AIG and the accounting rule changes? The estimates are simply absurd. BAC and MS report next week. If you know anyone who is still shorting the banks I’d like you to please have them contact me at TPC@PRAGCAP.COM so I can talk some sense into them.
A nice chart of the havoc wreaked on short sellers during the last 6 weeks. Astounding….