Thats what they said on October 2002. A 20 point rally in the spooz is no small matter, especially when we're close to support level.
And the markets told me the fifth wave from the rally went flat at the penny trying to test yesterday's last arm. Cover your longs. I'm telling ya.
Boy, I remember October 2002. I was pretty green back then and boy did I argue with the market. I think that was the last time I argued with the market because I got flattened. I remember going short MLMN and some other stock and they both went down 10% after I triggered. I walked away from the market with no stop -- that's right, no stop. I was convinced the market was heading much lower. Long story short, I came back to both stocks being up about 10%. I argued and argued and argued with the market until my broker took me out. I vowed never to make that mistake again. Not only did I get crunched because I was short....I also missed huge profits because I wasn't long and it all happened because I refused to listen to what the market was telling me. I was convinced it was "just short covering." Boy, do I remember 2002.
This could lead to a nice move up no question. But todays buying was short covering. If we see continued buying then i would believe the bull is back
No question this was 'running the stops', just like yesterday's open. Action in TWM was unreal at the close - down over 7% or so for the day. I wouldn't be surprised if there was even a nice 1% discount to NAV added with that price action. Too lazy to compute it myself, but wouldn't be surprised. Nice entry opportunity if you got closed out the other day (like I did). Tough to trade with stops in this market.
How can u say today was not a short squeeze ? Look at the way price rocketted up. Look at the way price moved. This was more indicative of stops getting slapped rather than controlled buying. If this was planned and orderly buying where were the controlled pullbacks ? How come both higher highs looked like tops ? That doesnt seem like orderly buying to me. I could be wrong though.
There's no way to be sure but today had a different "feel" to it. The other 2 days there felt like there was panic buying. Today just didn't feel like that but who knows. Check out the candle on the Russell when you get a chance. It looks a lot like the bottoms from earlier in the year, especially the first bounce off the lows in March. No way to know if this is "thee" bottom but it should be a tradable bottom at the least.