Eyeing A Short Covering Rally

2023-08-28 / Danielle Shay

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Short covering rallies appear when the put/call is high, as it is right now. The put/call ratio is hovering right around 1.0, and today, we saw the market trading higher at the end of the day. We also had signs of incoming volume and a decent, short-term uptrend. This is what to watch for in the case we get a gap up, and short-covering rally.

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Danielle Shay

Danielle Shay is a self-made trader, market analyst, and director of options at Simpler Trading. Initially drawn to trading for financial freedom and to support her son, she now teaches, trades, and provides market commentary. With a background in teaching, Danielle aims to simplify trading concepts for all skill levels. She is a regular expert guest on media outlets like CNBC, Fox News, and Yahoo Finance. Her primary trading focus is on relative strength setups using equity options, stocks, and ETFs. She contributed to John Carter's "Mastering the Trade" and champions the belief, "If I can do it, you can do it!".

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