Where Have all the Short-Sellers Gone?

[Stocks-to-Watch]

Short-covering can help boost controversial stocks, and on some days may even push the entire market ahead. But the market may get less of a boost from short covering in the weeks ahead, as the number of outstanding shorts on the NYSE is at its lowest level in a year, says Strategas Research Partners technical analyst Chris Verrone, per this post on the WSJ’s MarketBeat.

It’s a data point that may give investors pause — while it means fewer people are going short, it also means “the short covering phase of this rally is likely exhausted,” Verrone wrote.



Original Article Source by Barrons.com