gotta believe a lot of shorts will cover at the open
A spike for them... "this is about as bad as it can get in news." And the day opens, the stock spikes down, and they cover and move on. The small shorts will say... wow this is a really bad report... I will start a short position at the open. And the days will drag on... and it is already down... they may get a penny or two. Or they may get their nuts chopped off by hedge funds with a smaller time window who want to move on and harvest other somewhat negative earning reports. jmo. we shall see.