Short Covering

When short sellers in a security buy to cover.

In a bear market, if there is unexpectedly good news (economic or earnings announcements etc etc) it may lead to a rise in the market. Sometimes market commentators believe this is due to short covering.

According to Jim Rogers,”When everyone’s bearish on something and some news comes out that may be interpreted as bullish, shorts may cover…it’s the way markets have worked for hundreds of years”