Leave it to do David Einhorn, the esteemed head of Greenlight Capital, to draw this analogy: "Much like Charlie Sheen, who seems to believe that all publicity is good publicity, recent market behavior suggests that we are in the part of the cycle where 'all news is good news,'" Einhorn wrote in the letter obtained by MarketWatch.

And that environment has led to a situation that has proven rather punishing for the shorts, many of whom have been forced to cover.

"This quarter we were repeatedly confuzzled when we read company news announcements that we expected to cause falling stock prices, only to see them rise instead--and sometimes sharply at that," the letter noted.

Confuzzled? You've got to love that word. Let's hope it enters the lexicon, sort of like the word ginormous.

Einhorn apparently covered about a dozen short positions recently, as the market-wide bullishness was just too much. Four short positions in the for-profit education sector were closed out, as were two foreign bank shorts, a domestic bank short and a technology short. Two of the bank positions were closed at losses, as was the tech position.

"We believe that this environment is cyclical, and that it will continue this way ... until it doesn't." How's that for a prediction.

For more:
- here's the article

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