Late last week we hit the measured move from the head and shoulders pattern, a great spot to cover shorts and look to switch gears.
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The Good Book says to cover some shorts into a technical scenario like we saw yesterday.
The question for traders at this stage is, how deep of a correction will you look for to cover any shorts or buy back stocks?
Thus, if a fundamental reason for the dollar to rally should emerge, there could be some fireworks in the buck as the fast-money rushes to cover their shorts.
Bears who had been wagering on a lousy report got what they want, but they stopped shy of a full mauling, apparently electing to cover their shorts quickly after the initial plunge.
The gap down was a great opportunity for shorts to cover after a potent week-long down move.
It had the effect of forcing anyone who lent the stock out to call it back in, forcing shorts to cover their positions.
He said there might have been some short-term trading interest in trying to push the market higher to cause those shorts to cover and extend the gains.
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In November 2009 Newsweek put a picture of Sarah Palin in shorts on the cover, sparking cries (including some from Mrs Palin) of politically motivated sexism.
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Still, observes Reid, there is a substantial short interest in the stock (15% of float in October), which tends to add fuel to a stock's gains when shorts have to cover their position by buying shares.
The stock is likely to be in play this morning as shorts may look to cover.
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If there were good news out of the company, or if the Olympic Games rekindle enthusiasm for China in general, shorts may scramble to cover and produce a scenario that bank investors learned to love in mid-July.
Such a quick buy-in--the deadline was originally Aug. 11--can push the shares up as the shorts scramble for shares to cover.
He was described as African-American, 18 to 22 years old and wearing a white T-shirt and blue-jean shorts a description that could cover many people at the scene.
That means that each time there is another sizable discovery, the shorts have to scurry faster to try to cover their short positions.
Those shorts have been squeezed and have been forced to cover their losing bets this week, which only drove gold prices still higher.
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Some, however, was also buying to cover or close out short positions, as the number of total shorts fell by 2, 592.
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Shorts of Goldman Sachs as of mid-December would take 5.6 days to cover, down from 6.2 days in November.
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