Think a Short-Covering Rally Will Prolong the Uptrend? Here Are the Facts.
No ratings
Happy Friday, one and all. We hope you had a great trading week, but if you didn't, at least the weekend is here and that always helps. Of course, if you've been trading alongside the SCN newsletter's portfolio then you DID have a great week. Our
ANI Pharmaceuticals (ANIP) position has been on a roll for the past few days, and the
Astec Industries (ASTE) has been on a tear as well. We'll take a quick look at ANI in a moment and offer some updated advice on how to handle it. There's something more pressing to get out of the way first.
Even if you only follow the market at arm's length, I'm sure you've heard someone out there use the term "short covering" at some point within the past couple of months. As is so often the case though, those doing the talking failed to provide any context or data for their theory. That's not to say these folks are wrong. I'm just saying, there's a lot more so-called conventional wisdom floating around in the market's ether than there are cold, hard, proven facts. So, to give you the information someone else probably should have given you when they posed their premise, today I'm going to take a detailed (though concise) look at the market's trailing short interest, just for the sake of getting it straight.
