Short Covering

STI went crazy today, up 139 points! You saw many shortists covering their short positions before they burn a big hole in the pocket.

The short position I had didn't go up to hit my original stop-loss price, but anyway, I closed the position, with S$200 loss. Well, now all my short positions are closed and I can have peace of mind.

The market is expected to be volatile in the coming week. I only hope the preference shares can go up and recover all my paper losses.

However, what has changed over the past week? From extreme pessimistic to extreme optimistic? Lehman went down, Merrlyn sold itself, AIG bailed out. Then it is said Federal Reserve is going to setup a permanent institution to take in all the junks. Fundamentally, do you think the storm is over? Junks are junks.