short covering rally

I'll do a Alan Kohler, I found this chart which shows the shorters have over extended themselves just like they did last september. We can expect to see a rally for some time whilst these shorters get a taste of their own medicina.

cheers


http://www.schaeffersresearch.com/commentary/content/blogs/if+short+interest+is+slipping+are+we+due+for+some+upside/trading_floor_blog.aspx?single=true&blogid=111921