Quote from DeepFried:
Investors' view of the market is like an exponential moving average. They're most influenced by more recent market action but their mood about the market goes back, oh, let's say 6 to 9 months. Therefore, plenty of people are still steeling themselves for another selloff like the one in early summer.
Also, markets go down faster than they go up so it's natural for short-term traders to root for a quick move that they can make big money off of. It's funny to hear the moralistic tone of some of these bear calls, though. Some people seem to think it's immoral for the market to be optimistic about the future. If the market's rallying, just roll with it; don't get get all outraged and indignant because the markets aren't cooperating with your short bias.
