from Dan Norcini:
This story simply will not die as it keep happening – hedge funds continue to cover short positions to an extent far surpassing the amount of fresh, new buying that they are doing.
Last week they covered ( closed out) 4,675 short positions. This week they outdid themselves as they covered a whopping 5,248 shorts made up of both futures and option positions! On the long side, they actually reduced their exposure by some 482 contracts. It is too bad that we cannot see what occurred from Wednesday through Friday. My view is that today’s strong rally through overhead chart resistance further cleaned out some more of their short positions in a big way.
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