There may some investors covering their short positions, but the upward short-covering pressure at the open, if it occurs, will be from market makers who sold stock yesterday fulfilling their liquidity obligations that they did not have in their inventory. They will need to close out these short positions by buying premarket or shortly after the open. The stronger the stock looks, the more aggressive the mm's will be in trying to close out their outstanding short positions. It is uncertain how much of this will occur, though, since PRUS, INCA, and PIPR were selling size all day, giving many mm's ample opportunity to cover before the close. CEO appearance on CNBC also alters the equation a little, since it could prompt substantial buying or selling, depending on what he says. Good luck.
Dave |
