It has nothing to do with investing, but this one factor is important to understand as it can create confusion. We normally don’t talk about F&Os in this space. However, it is good to know in the current circumstances that, after a sharp fall, any upmove in the indices and some key stocks could be because of short-covering. They are usually sharp and might suggest a recovery in the market. But it may not be an actual recovery. Any recovery that is sustainable will have an element of market breadth – and anything without it is suspect.
