From a pattern daytrading perspective, I've seen a lot of premkt gap reversals. Look at S&P today and yesterday. The 8:30am til 9:30am premkt trend reversed after 9:30am ... odd whipsaw price action.
Except that Gold shit the sheets in March along with the major market indices. Granted, it was 15% as compared to 31%-ish ish in the S&P but it wasn't the vaunted "flight to quality" appreciation that follows conventional wisdom. The US Dollar was off 5% worse day in March. I'm not sure that Warren Buffett's performance the past decade is the apex of his career. There's a bit of Joe Biden in there. He puked airline stocks then sat on his hands in March/April. He infuriated his institutional investors by sitting on a pile of cash during FIVE YEARS of the most historic bull run in Wall Street history. I'm not saying that he's wrong, but he has felt the same way for the past decade and has obviously let the world (and the markets) pass him by. It seems that unless someone is willing to quite literally approach him and dump the deal of the Century into his lap (Lloyd Blankfein and Goldman Sachs in 2008) that he's perfectly willing to quip folksy wisdom on TV segments and drink Sanka and eat vanilla ice cream out of little plastic cups with wooden spoons. Do this: overlay a chart of BRK with SPY for the past five years. YTD is really special
I've been around 31 yrs and as far as the mkt goes this is as giddy as i've ever seen it . Small stocks by the 10 plus a day up 50-100% . I personally know at least 15 people from the past 3 months trading daily as a side kick . Uone $2 to $54 in 7 days because its a black company . Insanity everywhere but the trends up and the desire to buy dips is mind bobbling . This puts 1999 to shame . I'm basically trading 80% long and 20% short . But the short scalps are usually 10 mins to an hr . The mantra everywhere is you can't lose long as the Fed has your back . I'm still of the opinion we tank big at some pt in the coming months . But i trade price and until i see the proof i'm very cautious when i short . But when the mkt tells me its time to short hard i will . I'm nothing more than a servant to the mkt . I obey its commands .
Hafez -- you and I both remember 1999. That was crazy. This is definitely the first time I have seen a market acting like that since then with the participation of the retail trader. Again, combination of folks being at home and no commissions created this environment, especially with respect to those small stocks. My custom market health indicator hasn't wavered in its upward bias since late March.
No question 1999 was crazier with the bigger stocks . Qcom,asnd,cmgi,cmrc,yahoo,csco($500 bil cap which was 4 times the whole networking mkt),Ge( 50 p/e with 13% growth). But this seems much crazier with the total amount of new people
If you didn't buy this dip, don't go bitching it will go to nasdaq 20k when we hit ATH later next week