Short Squeeze

This morning we gapped higher and off we went:

To say the least, I've been around long enough to recognize a short-squeeze when I see one.

Last week we saw two potential tells that this could be in store - 1) a dramatic change in the sentiment as expressed in the AAII (i.e. bearish sentiment had risen to levels not seen since before the March lows) and 2) the positive response to the jobs report and, in particular, late-day strength on Friday indicating that bears had become trapped and not able to escape their positions. When we jumped from the opening bell and continued moving higher, it was clear a short squeeze was underway and another beating was in store for the bears.

Read more of my after-hours report.