by Rick Ackerman
The Wall Street Journal inadvertently forecast Monday’s vicious short-squeeze rally with this headline: Calm Market Turns Choppy. Strictly speaking, the word “choppy” implies that stocks have moved both up and down. In this case, however, they had only moved one way — i.e., steeply down — at the time the headline was written. How did the editors at the Journal “know” that a buying panic on Monday would turn Friday’s plunge into “chop”? Actually, they didn’t. It is beyond the news media’s straitened understanding of the real world to imagine that Friday, when the Dow Industrials fell by nearly 400 points, might have been the beginning of a bear market avalanche.