Demand for Treasuries increased, analysts said, when the yield on the benchmark 10-year note rose above 4.40percentt, causing some traders to buy back securities they had borrowed and sold on expectations that prices would fall -- a process known as short covering.
We see little news to set off today's enthusiasm for Valero, but the rally that has put the calls into the money has the potential to spark a significant amount of short covering.
Some analysts linked the rise to short covering.
Many of yesterday's gains were attributed to what is known as short covering.
"It's not just some professional short covering.
The stock could also benefit from continued short covering.
The first was short, covering June and July 2009.
"I fail to see how anyone came to the conclusion that Friday was anything more than a short-covering rally and a near-term bounce," said William Meehan, chief market analyst at Cantor Fitzgerald.
On a sentimental front, TIF could be in the midst of a short-covering rally.
The stock still stands to benefit from a short-covering scenario.
Upgrades or a short-covering rally could create additional buying pressure for WCG, extending the security's rally.
