I was talking to a hedge fund guy today who is 100% short. His argument is that this month is the reverse mirror image of Dec 1999 so we still have about 3 months to go. I disagree with his comparison for the following reason. I think Dec. 99 is actually _similar_ to this month because of the huge short interest in anticipation of Y2K. When Y2K came and went there was massive covering that lasted for 2-4 months. I think a lot of people/funds now are short/hedged/out of the market in anticipation of August 14, the SEC deadline for CEOs to sign their balance sheets. There are more shares short now than ever. Just like Y2K I think Aug 14 will be a non-event and will basically be the catalyst for the bull. I tend to think this month is like a reverse mirror image of Feb/Mar 2000. a. Pessimism is at an extreme now just as optimism was at an extreme then. b. Huge money on the sidelines now. No money on the sidelines then. c. The earnings yield of the S&P 500 divided by the fed funds rate is at an extreme high not seen since 1982. It was at an all time low in Feb 2000.