Friday's rally - short covering?

Discussion in 'Risk Management' started by themickey, Mar 14, 2020.

  1. zghorner

    zghorner

    Thanks Ayn...loved your books, big fan. What is your prediction for next week?
     
    #11     Mar 14, 2020
    jys78 likes this.
  2. southall

    southall

    Volume was nothing special.
     
    #12     Mar 14, 2020
  3. Regardless of what it was - we still ended the week down - 8,79 % and approximately down 20 % from the top on the S&P 500.

    Big picture - this may have been just a retrace.

    The entire situation still seems entirely unresolved and uncertain to me, so I don't see why we can't drop a lot further from here.
     
    #13     Mar 14, 2020
    Clubber Lang likes this.
  4. notagain

    notagain

    ES bottom first minute of Friday 13th
    Screen Shot 2020-03-14 at 10.41.41 AM.png
     
    #14     Mar 14, 2020
  5. ET180

    ET180

    How do you know that?

    That happens with all strong moves.
     
    #15     Mar 14, 2020
  6. FriskyCat

    FriskyCat

    7.00% in 26 minutes on ES/SPX. Let that number sink in for a minute.
     
    #16     Mar 14, 2020
  7. tiddlywinks

    tiddlywinks

    You need to factor the "roll".

    ESVol.jpg
     
    #17     Mar 14, 2020
    TommyR likes this.
  8. piezoe

    piezoe

    I don't belief we will drop a lot further than the low of Thursday, which we will probably revisit as the effect of the coming recession takes hold between now and the end of the April earning season. The reason I say that is because the low we just visited on Thursday was a sustainable low based on 3% compounded economic growth from the devils bottom of 666 in March 2009. This may, from a technical viewpoint, be considered a reference point at which all excesses in valuation have been wrung out of the equities market. Consequently, I feel fairly safe in saying that long term investors who bought near those Thursday lows on Friday morning can sit tight and confidently ride out the recession. Even if we drop out of the longer term S&P Channel for a while during the upcoming recession, we should quickly return to the S&P Channel once the number of new virus case reported begins to drop. We are now seeing the new cases rising in number, but within 18 months or less we should see the number of new cases dropping. Of course we are dependent on competent government handling of this pandemic. At the moment, we are missing leadership at the top because so many agency heads have been appointed on grounds other than competency. That will be changing soon.
     
    #18     Mar 14, 2020
  9. themickey

    themickey

    The ten largest cap stocks on ASX had their highest volumes on Friday for the past 12 months.
     
    #19     Mar 14, 2020
  10. themickey

    themickey

    I went looking through the past 20 years, many market dead cat bounces were on Fridays, most bottom rallys began on Mondays through to Wednesdays.
     
    #20     Mar 14, 2020