"We all understand what panic selling is I don't think there such a thing as panic buying" your response is humorous. you never heard of short squeezes?
1. the shorts will not love you back. 2."Even on a intraday basis I'm sure this is true. " with 8 posts you should be humble and be sure of nothing.
With Es specifically, I can't tell you how many times I've been in a chat with dudes who are in awe of some early morning selloff, and yet the Range of the pm rally ends up bigger than the selloff by 5 points or more...
Well the replies have been interesting. I didn't know It was such a controversy. We can all make money long or short it really doesn't matter does it. Good trading to everyone
"Market" is a pretty generic. Maybe you should have posted "EQUITY MARKETS"? I haven't noticed any disparity in market bias when trading currency.
Once you get caught in a rush to cover shorts, you'll learn the hard way that there is indeed such a thing as panic buying.
I understand the short squeeze but Only a fraction of the volume in the equity markets are shorts. Especially when we're talking anout retail investors. Blows my mind how many today's to make money when things go down. I had a thirty minute conversation with a friend of mine today trying to explain how a short works and he still didn't get it.
When you realise that 2010 to 2016 has been a tremendous bull-run, to see the number of big decliners outpacing big runners makes my point. Now based on hard-data based on my premise (avoid big moves that are just dead-cat bounces from prior sell-offs, or sell-offs following prior run - no new 3-month price level record being set), I went back ten years ago (June 2007 till date on the SPY), and here are moves meeting my definition. Only two run-ups, and 22 declines Run-ups Date Fractional rally 04/05/09 0.03402 27/10/11 0.034835 Decliners Date Fractional decline 15/09/08 -0.04759 17/09/08 -0.04496 29/09/08 -0.07836 06/10/08 -0.05093 07/10/08 -0.04479 09/10/08 -0.06984 24/10/08 -0.05071 27/10/08 -0.0355 19/11/08 -0.06408 20/11/08 -0.07423 23/02/09 -0.03578 02/03/09 -0.04504 05/03/09 -0.04085 04/02/10 -0.03087 20/05/10 -0.03776 04/06/10 -0.03514 29/06/10 -0.03088 04/08/11 -0.04684 08/08/11 -0.06512 21/08/15 -0.03108 24/08/15 -0.04114 24/06/16 -0.03643