“Unsustainable” short covering seems to be driving the market higher

Throughout June an interesting started to appear in equities. According to TwoRivers Analytics, which specializes in high-quality investment ideas, with an emphasis on short ideas, investor sentiment seems to have reached an inflection point. Specifically, according to Eric Fernandez and team, the market is currently experiencing a break down of momentum stocks along with what TwoRivers has labeled “sharp short-covering.” According to Eric, the risk appetite among investors is currently mixed, a reversal from the trend seen earlier in the year. Throughout June momentum stocks took a breather and stocks that had fallen the most earlier in the year bounced…