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Western Refining, Inc. Message Board

  • edmanfan edmanfan Nov 13, 2013 10:28 AM Flag

    short covering analysis

    If you assume almost 100% of the incremental volume yesterday were shorts covering their positions and about $1.50 of the gain was due to new fundamentals and $1.50 due to short covering, then we can estimate the impact of the remaining 16-17MM shorts scrambling to cover. The impact of the covering diminishes as the price rises because it will attract new sellers to help them out. So the first $2MM of covering could add $1.50 per share, the next $2MM could be $1.30, etc so if $10MM of the remaining 16-17MM short covers, we could see more than a $5 per share increase FROM HERE.

    Sentiment: Buy

22.87+0.37(+1.64%)May 24 4:02 PMEDT