PBI agree that the market may have been more heavily short than...

PB

I agree that the market may have been more heavily short than usual, however I don't think this necessarily translates into a lot more upside than we've already seen.

When the market is caught on the wrong side and is Long we see a lot of Mum & Dad investors (and 90% of those on HotCopper) exposed to margin calls, stop-losses (if they've ever heard of them) and the panic or forced selling can last for days. When the market is caught Short (such as today) those in peril tend to be the professional investors and traders, who generally will have stops or will act fairly quickly to cover. Today's rally was over by 10:30 this morning.

The volumes at risk will also be very different - if caught out and Long there will be about ten times the money at risk and therefore about ten times the total potential losses when compared to moves of the same size that hurt those who are Short.

That said - the market will probably rally for days now - hope you are on the right side of it!