Why the market fall of February was so different to January and what it means

One would have to have been rather disconnected to markets to not have noticed the worst start to the year for a long time for equity markets that continued into February. But what is interesting is when one "looks under the hood", January and February were driven lower by completely different reasons, with a large reversal leaving many fund managers positioned poorly for the rally that started on the 10th. The really big question now is: do you "stick or twist"? To "stick" one has to believe it was just a short covering rally. To "twist" is rather more nuanced and suggests this market may be going higher rather than lower. These levels are an important battle point for the bulls and bears and we outline what sort of data needs to emerge to support the respective cases. (VIEW LINK)