The “shorter than Verne Troyer” types have more or less been marginalized by this market over the past month (however entertaining/shocking their comments on iBC blogs may be), as the early-Augsut breakout has consolidated sideways rather than with a sharp price giveback. Into Friday’s highly-aniticpated Jackson Hole meeting and speech by Chairman Bernanke, there seems to be a consensus that the market is not going to do much before that event. While that may be true on the surface with the major indices, underneath the surface there are pockets of action working well, without too much carnage of which to speak. We have vicious short squeezes in BONT and SKUL, while biotechs like PCRX are acting very well, just as a few examples.
As long as mild consolidation with impressive individual price performance remains the theme, the heavily-short bears will be relegated to the stuffed animal corner, not ready to play with the grown-ups. Perhaps that will change after Jackson Hole, but all I can do is trade the market before me in the here and now.