Weak shorts (dumb money) are being shaken out here, panic covering at a loss or at breakeven, these shorts are just adding fuel to the rally We expect this pattern to continue: heavy buying by smart money while weak shorts are forced to cover MarketSmurf has said he will be covering his short position at break even. So he fits this pattern of dumb money pushing the market higher with covering. We continue to hold our long position.
If I may ask a simple question? Why are the trades not opened and closed based on what the market is doing?
Longer term conviction... not everyone trades in the same way and with the same timeframe. In Surf's case, conviction is down about 5% sooner than later... it will depend on how long he will keep the short if we go up further.