Oversold bounces like today that don't make much sense are the norm not the exception. Take a look back at previous bearish periods and you'll see similar stuff. It's rare to get an extremely consistent downtrend even if there are horrible fundamentals (take a look back at the big oversold bounces in 2007-2009 for example).
the bullish move yesterday was in response to the big money betting on more quantitative easing we will get a good measure of that possibility when bernanke speaks this morning at 10am something tells me he is going to talk about using a wait and see approach( looking at the manuf and jobs data for the next few weeks) to get a more solid picture of the economy's health before he considers pulling the trigger on QE3
I was curious as about the way the market was moving yesterday as well. I haven't been consistently watching it for a long time. Maybe only about a month or so. But I haven't seen it move like that. It seems like there was a lack of volatility. Just short moves up. Is what I'm saying making any sense?
Well just trying to figure out the reason for the move, usually when the market moves that much there is an obvious reason behind it. When they say its because of QE3 bets or US stimulus hopes that doesnt really make sense to me because gold actually sold off yesterday when it should have been going up if that was the case. But then again gold has been very strange lately.
Why would the market not move higher? It should not be a major surprise that the market retraces after a 150 point down move. It happened from 1290 to 1333,50 as well, before heading lower.
I guess I was just surprised at the speed of the move we went from 1267 two mornings ago now trading at 1328 this morning on the S&P with no real news out there in 2 days but I guess thats the market for you.
If you are surprised by what happens in the market, you are not well enough prepared. Always entertain and be prepared for multiple scenarios at any given time.
There's essentially some 70 points based on QE3 rumors. That's pretty significant regardless of what some of the folks in the thread claim to be "normal". Personally, with Bernanke being the captain of CTRL-P, and Yellen the arch-dove coming out yesterday to yap about more accommodation (she's an ass), I think the market is behaving like your typical heroin addict who was just told he'd get his next fix at breakfast.