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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Patricia Trinchero who wrote (174841)	1/2/2009 4:12:51 PM
From: patron_anejo_por_favor	Respond to of 306849

Yes to the first part. Covering a short simply means buying back the shares you sold, i.e, closing the position. It can be at either a loss or a gain (hopefully the latter....<G>)

To: Patricia Trinchero who wrote (174841)	1/2/2009 4:50:18 PM
From: GraceZ	Read Replies (1) \| Respond to of 306849

Covering a short is when people buy the shares to stop losing money? You cover to realize unrealized gains as well, close out a profitable position. My original contention that today's buying had a lot to do with that, in that it was the first trading day of the new year. People with very profitable short positions could buy back the shares to cover and not owe taxes on those gains until April 2010, if they covered last week they'd owe taxes in April 2009. I made that observation based on the fact that the biggest daily gains I was seeing were on names that had fallen so sharply last year.