Friday, February 13, 2009

Yesterday Rally Into Close Was Another Short-Covering Rally

Yesterday's forceful rally at the end of the day was another short-covering rally. It occurred on very thin volume and with few true buyers. In anticipation of a long weekend and a holiday on Monday, many traders thought it wise to exit the market rather than risk the turmoil that could occur over the weekend.

Over night, stock futures have remained relatively calm.