That is my point - there can't be many shorts left that have not covered as the Euro rose from $1.31. Anyone still short going into yesterday's meeting was just foolish anyway. I can't see anyone who was short waking up with a 3 cent move in the Euro and saying to themselves - I'd better cover this. Maybe they stopped out a few people, but my money is (literally) on the side that a lot of new short positions opened up this afternoon.
No doubt that a lot of sideline money was moved into European equities, and that some asset classes were switched that direction - but a 3-5% move today -- on top of a 10-12% move -- is not the makings of a sustainable rally -- any more than a voluntary haircut makes for sustainable Greek debt.