By "a long while" are we talking about a month after the majority of the short positions are closed? A ~2% dip in the Dow in one day is just small enough to not really be that big of a deal in isolation if the previous upward trend continues but if this goes on for at least a week (2% lost every trading day for 5 of them translates to a 9.6% drop) without quickly bouncing back I can see your angle.
if this goes on for at least a week (2% lost every trading day for 5 of them translates to a 9.6% drop) without quickly bouncing back I can see your angle.
This is my expectation. It seems the bell-weather for the market is short sellers' ability to cover their losses. But their position will continue to look worse and worse for awhile.
By "a long while" are we talking about a month after the majority of the short positions are closed? A ~2% dip in the Dow in one day is just small enough to not really be that big of a deal in isolation if the previous upward trend continues but if this goes on for at least a week (2% lost every trading day for 5 of them translates to a 9.6% drop) without quickly bouncing back I can see your angle.
This is my expectation. It seems the bell-weather for the market is short sellers' ability to cover their losses. But their position will continue to look worse and worse for awhile.