Buyers jumped into the market yesterday, taking back about one-third of last
week's losses. The reason given for the recovery was that was no new news had
come from Europe or theUnited States. In other words, the stock market is so
oriented to news that no news is good news. Imagine what would occur if good
news was announced. Whatever the cause of the rally, volume on the NYSE was just
under 1.2 billion shares with advancers ahead of decliners by about 2-to-1 on
both the Big Board and Nasdaq. For the period ending Sept. 15, the short
interest rose 5.48%, which is the highest since March 31, 2009, according to The
Wall Street Journal . Short interest is the number of short-selling positions on
the NYSE that have not been closed out. Whenever short interest rises, there is
a high probability of a sudden short-covering rally, like yesterday. Most of the
shorts are held by high-volume speculators who are easily frightened and cover
in a frenzy.
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