Still in a downtrend so from a technical perspective no need to cover. From a fundamental standpoint energy prices not going up so do not see CHK beating on earnings. P/E is too high. Still think it is over priced. Of course wall street calls the shots. They may be covering and going long today for all I know. Not seeing it happening but they are a tricky bunch or maybe I should say, "A crooked bunch".
Most believe it to be underpriced but I agree that shorts appear to be safe for the moment, but nothing is forever, as they say. For example, takeover talks made public would almost certainly bump the SP over $5. immediately. Then what?
Shorts trying to time it right. They want to buy back in before the cold weather but are also looking at lower oil prices. The problem with the balancing act is you don't want to try to cover at the same time as everyone else. They have a tremendous amount of shares to cover.