I'll tell you what - I haven't been watching the markets intraday for years like some of you guys, but that action in C on Friday morning was instructive. Stock has been weak for the past xx weeks. It had been trading off since 8:30 a.m. but when the market opened, it went straight up to $29.00 as the markets tanked. I would love to know who was buying it up like that for the first 15 minutes. Shorts, either daytrades or long term, aren't covering after that pre-market (maybe at $28.89 but not where we were at 9:30). 7MM shares. Who was buying into what appeared to be shaping up as down? Not daytraders like the guys on here who are always saying 'gap and trap, gap and trap'. Bigger holders who are underwater and are trying (perhaps emotionally) to average down? Big money making a big mistake, as suggested above, or smart money buying when blood is running in the streets?
I have developed, over the years, a few different indirect ways of trying to detect large/insider buying, and I'm seeing strong signs of both in the financials in general and C in particular. However, these guys do trade with long timeframes, and I remember seeing or reading somewhere that insiders are generally early both getting in and getting out, so...be careful out there.
Would it not make the most sense in the world for them to buy financials in a big oil dependent economy when oil is priced at ridiculous levels, its a perfect hedge, its not like the price of oil can climb forever, if it does not, so much money must be ready to chase anything but real estate and besides so much will change when the oil tax disappears.
So next time it gets to 12500 it will be a quadruple bottom. How rare is that? Each time it hits support, the support gets stronger, they say.
If you connect the March and August lows together on weekly chart, today's intraday low made a perfect bounce off the long-term trendline. I've been watching for that (bounce off 1375 to 1380) for a long time. I thought it might happen in November. All in all, today was the best reversal day (hammer) since August 16 We'll see what happens from here...