Typically when a bull run becomes very late-stage you start to see speculation run rampant in the worst of the worst. While it is debatable that we still have plenty of skeptics about the current rally, when you see the rare earth spiking 10-30% today (like MCP up over 32%, below), while still featuring unhealthy overall charts, it does seem to indicate that every last short is on the cusp of being squeezed in those heavily-shorted “pigs.”
Perhaps we might not be there yet, in terms of bulls getting out of line, but we are on our way, which means shorts should define their risk and longs should not set-it-and-forget-it on new trades.
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