Quote from Lawrence Chan:
Actually the reasoning behind (ignoring the technical details) is very simple.
There was a big up day that "run" over most of the shorts.
The less capitalized ones are stopped out, but not the major players. They are hanging onto huge positions that cannot be unwinded on that day.
So, what are the big players going to do to recoup their costs or positions?
Run the price up and down to "workout" their average costs at the expense of day trading trend followers, open range breakout traders, etc.
Based on the volume on that run up day, it should take at least 3 days to finish the job.
