Posts Tagged ‘short covering rally’

WAS IT JUST A SHORT COVERING RALLY?

Click here for a FREE, 90-day trail subscription to our PSW Report!

WAS IT JUST A SHORT COVERING RALLY?

Courtesy of The Pragmatic Capitalist

The light volume, poor breadth and quick surge in the market over the last three days has a lot of people calling this nothing more than a short covering rally.  I went back and looked at the list of the S&P 500 stocks with the highest short interest to see how they’ve performed over the last three days.  The results are pretty good.  The average stock on the list has returned 10.5% over the last three days with none of them turning in a negative return.  The S&P is up 6% over the same period.  The Nasdaq 100 is up 5% and the Russell 2000 is up 7% over the same period which would imply that beta has had little to do with the overall return of these names and that this has indeed been a short covering rally.

si1 - short interest

 

 


Tags: ,




 
 
 

Phil's Favorites

Shade of the Week

 

Shade of the Week

Courtesy of 

Michael Cembalest (JPMorgan) on Goldman’s vaccine call…

Last week, Goldman issued a report that was bullish on the prospect of vaccine approval in 2020: “We expect that the FDA will approve at least one vaccine this year and that large shares of the US and European populations will be vaccinated by the end of 2021Q2 and 2021Q3, respectively.” I don’t disagree from a completely birds-eye perspective…but based on what?

Goldman’s first exhibit cited a random group of unnamed superforecasters from the “Good Judgment” project, a group of people who make predi...



more from Ilene

ValueWalk

Emerging Market Airports - Broyhill Asset Management

By Jacob Wolinsky. Originally published at ValueWalk.

Broyhill Asset Management investment thesis on Mexico’s airports.

The economic impacts of COVID-19 have been felt far and wide. The pandemic has indiscriminately affected both developing and emerging economies. The virus has shuttered some businesses but has also created some interesting opportunities for the long-term, value-oriented investor.

Emerging market air travel has been hard hit by the global pandemic. But air travel is key to economic development.  Airports are recognized as critical infrastructure, supporting employment and fostering growth in tourism, trade, and business.

Broyhill Asset Management’s investment thesis below, highlights how private airports carry lower risk than airlines, generate highe...



more from ValueWalk

Kimble Charting Solutions

History Says Gold Correction Could Lead to Big Rally!

Courtesy of Chris Kimble

Over a decade ago, Gold rallied past its 1980 highs and over $1000/oz at (1) on today’s chart.

That rise to new highs was met with a 30 percent correction at (2), followed by a blast off rally to new highs.

Is gold setting up for a repeat of its past?

Gold recently rallied past its 2011 highs and above $2000/oz. Could Gold soon turn lower for a sharp correction before another blast off toward $3000?

If so, Gold bulls should look for a pullback, before blasting higher. Stay tuned!

This article was first written fo...



more from Kimble C.S.

Zero Hedge

El Erian: Reading The Dollar Doldrums

Courtesy of ZeroHedge View original post here.

Authored by Mohamed El-Erian via Project Syndicate,

A sharp decline in the relative value of the dollar this year has been met with cheers from those hoping for a short-term boost to the US economy, and with hand-wringing by those worried about the currency's global standing. But while both views reflect underlying truths, neither tells the whole story.

...



more from Tyler

Biotech/COVID-19

New Study Finds Potential Reason Why COVID-19 Occurs Less In Children

By Paula Liu via The Epoch Times, via ZeroHedge

The reason COVID-19 occurs less frequently in children could be due to the lack of a certain enzyme, researchers have found.

This new study detailed in the Journal of the American Medical Association ...



more from Biotech/COVID-19

The Technical Traders

Adaptive Fibonacci Price Modeling System Suggests Market Peak May Be Near

Courtesy of Technical Traders

Our Adaptive Fibonacci Price Modeling system is suggesting a moderate price peak may be already setting up in the NASDAQ while the Dow Jones, S&P500, and Transportation Index continue to rally beyond the projected Fibonacci Price Expansion Levels.  This indicates that capital may be shifting away from the already lofty Technology sector and into Basic Materials, Financials, Energy, Consumer Staples, Utilities, as well as other sectors.

This type of a structural market shift indicates a move away from speculation and towards Blue Chip returns. It suggests traders and investors are expecting the US consumer to come back strong (or at least hold up the market at...



more from Tech. Traders

Chart School

Silver Big Channel

Courtesy of Read the Ticker

Big channels are the sand pit of price action. Lets review some big trends of these past months.


GLD
- Moving higher to upper solid red line channel


Click for popup. Clear your browser cache if image is not showing.






XAU
- Ready to pause, or simply explode.



Click for popup. Clear your browser cache if image is not showing.





SILVER
- Ready to pause, or simply explode.


Click for popup. Clear your browser cache if image i...



more from Chart School

Digital Currencies

Raoul Pal: "It May Not Be Worth Owning Any Asset Other Than Bitcoin"

Courtesy of ZeroHedge View original post here.

Authored by Turner Wright via CoinTelegraph.com,

Raoul Pal, CEO and founder of Real Vision, says Bitcoin may soon become his only asset for long-term investments.

image courtesy of CoinTelegraph ...



more from Bitcoin

Lee's Free Thinking

Texas, Florida, Arizona, Georgia - The Branch COVIDIANS Are Still Burning Down the House

 

Texas, Florida, Arizona, Georgia – The Branch COVIDIANS Are Still Burning Down the House

Courtesy of Lee Adler, WallStreetExaminer 

The numbers of new cases in some of the hardest hit COVID19 states have started to plateau, or even decline, over the past few days. A few pundits have noted it and concluded that it was a hopeful sign. 

Is it real or is something else going on? Like a restriction in the numbers of tests, or simply the inability to test enough, or are some people simply giving up on getting tested? Because as we all know from our dear leader, the less testing, the less...



more from Lee

Members' Corner

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

 

Coronavirus, 'Plandemic' and the seven traits of conspiratorial thinking

No matter the details of the plot, conspiracy theories follow common patterns of thought. Ranta Images/iStock/Getty Images Plus

Courtesy of John Cook, George Mason University; Sander van der Linden, University of Cambridge; Stephan Lewandowsky...



more from Our Members

Insider Scoop

Economic Data Scheduled For Friday

Courtesy of Benzinga

  • Data on nonfarm payrolls and unemployment rate for March will be released at 8:30 a.m. ET.
  • US Services Purchasing Managers' Index for March is scheduled for release at 9:45 a.m. ET.
  • The ISM's non-manufacturing index for March will be released at 10:00 a.m. ET.
  • The Baker Hughes North American rig count report for the latest week is scheduled for release at 1:00 p.m. ET.
...

http://www.insidercow.com/ more from Insider

Promotions

Free, Live Webinar on Stocks, Options and Trading Strategies

TODAY's LIVE webinar on stocks, options and trading strategy is open to all!

Feb. 26, 1pm EST

Click HERE to join the PSW weekly webinar at 1 pm EST.

Phil will discuss positions, COVID-19, market volatility -- the selloff -- and more! 

This week, we also have a special presentation from Mike Anton of TradeExchange.com. It's a new service that we're excited to be a part of! 

Mike will show off the TradeExchange's new platform which you can try for free.  

...

more from Promotions

Mapping The Market

How IPOs Are Priced

Via Jean Luc 

Funny but probably true:

...

more from M.T.M.





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. Contact Ilene to learn about our affiliate and content sharing programs.