Data Doesn’t Show a Short Rally, Analyst Says

A January rally in December laggards might seem to be caused by short covering, but Data Explorers Will Duff Gordon shows otherwise.
“We hate to rain on the parade on that particular theory, and there may be a tiny bit of truth in it — intraday covering or something — but whatever way we cut the data, we can’t find much evidence of sort of major short covering,” William Duff Gordon of Data Explorers told “Fast Money.” “And in fact, it points to actually shorts holding steady or actually slightly increasing in those stocks that have rebounded the most in January so far.”