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Far from an expert on this and if anyone wants to correct me then I'm definately all ears, but wouldn't a whole lot of shorts mean there's just as much risk of a blow out to the upside with all those shorts covering??
Read what I said.....that was covered specifically; "Here is the unique situation we have, with all this held SHORT inventory in the ES there is a LOT of fuel for a mean SHORT COVERING rally ahead (10 to 15 point range extension minimum in only one trade day). I would say to be vigilant and keep your eye on the US cash session Equities BUY / SELL program activity for "the TELL" Monday. After the trade day on Monday, I will review the ES held inventory situation and give you an update as to what I see for Tuesday." Also, for the 3 ES I am still holding (1224's cost basis)....1210.75 is my first target (last 2 ES I will hold as runners). Euro selling off so far tonight helping to pull down CL and ES (covered my last Euro SHORT mentioned before at 1.3301).
Hey, you brought up an excellent point so I wanted to make sure you saw what I said about that possibility. Some of the strongest most linear movements of price action is almost always fueled by covering action in the order flow (SHORT covering rallies or LONG covering sell offs from significant "market order" driven order flow).
Yep, in fact a nice intraday trendline down complete with lower highs and shallow corrections. Oil and the dollar index are cooperating.