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Short covering?

Espaço dedicado a todo o tipo de troca de impressões sobre os mercados financeiros e ao que possa condicionar o desempenho dos mesmos.

podemos ter um short bounce mas,...

por Davos » 11/2/2003 10:18

SPX
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Davos
 
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Short covering?

por Davos » 11/2/2003 10:15

Dois parágrafos que podem indicar um short covering:

1-Yields signal the inverse of bond activity. As bonds are sold, yields rise, and can be used to track action in the equities as funds flow between the two markets. A look at today's action in the ten-year yield shows that the yield actually began to find support and turn higher prior to the announcement from Iraq. We approached Friday's low, but did not break it, even as the major equity indices were finding new lows. That was our first signal that the drop had slowed on its own and the flow of money from equities into treasuries was drying up. At that point bears could have begun to protect short positions, even without having any idea what was about to hit the newswires.

2-The high close today in the equity-only put-call ratio appears to be mostly genuine, with a preliminary reading of 1.0. That's a plus, except for the fact that it came on a down day for the VIX, the options volatility index, which suggests that there could be short covering occurring, or just not the level of fear we'd like to see. But in the short-term, we'd have to label that one a positive.
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