Sino-Global Shipping America (SINO)

[Maker13]

(https://sw.graphiq.com/w/l6aFamDTHLv)

Short covering is Wall Street lingo for when a crowd of bears scramble to close out their bets that a stock's price will fall. The most recent exchange data showed that short interest, or bearish bets, had soared to historic heights in recent weeks. Quant, or quantitative trading, refer to computer-based systems that can make very short-term trading decisions based only on relative price movement rather than fundamental or macro news.


Don't miss: Shipping stocks soar as bears abandon ship (http://www.marketwatch.com/story/shipping-stocks-soar-as-bears-abandon-ship-2016-11-16).


Wells Fargo's Webber said that while a significant pullback in the sector is likely, he also believes the troubled sector (http://www.marketwatch.com/story/foundering-hanjin-shipping-seeks-debt-relief-2016-05-02) provides an opportunity for longer-term investors (http://www.wsj.com/articles/taiwan-approves-17-6-billion-aid-package-to-troubled-shipping-companies-1479313587) once the market settles down.

"While we believe these pricing movements are still too severe [to] get in front of on the short side (at least for us), we do think there will be a material flip side to his trade," Webber wrote. "Ultimately, we think they'll give a lot of this back...but probably not all of it, as longer-term prospects have likely improved to at least some degree."

-Tomi Kilgore; 415-439-6400; [e-mail]

(END) Dow Jones Newswires

November 17, 2016 16:38 ET (21:38 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.