The move was a complete joke. Some sort of retracement was due, but as usual, the market overcompensated. We're supposed to believe the market rallied 3% on "concerns over China's plans to review Euro purchases, ease"? I am now a bear. I won't be buying dips at this point any more, nor will I be shorting until we're back under 1080. So I'll play currencies for a while until silly season is over.
I just watched a piece on yahoo by Roque and it says what I think for different reasons but the same conclusion. 990 -1000 in the SP500 and that this "volatility spike" is paring of risk which results in weirdness as to the macro shifts but in the end the bounce was just that and more weakness needs to occur prior to a long-lasting rally. So the "silliness" maybe just that a silly bounce before the "real jiggly bottom we all like so much." Everyone has a slightly different definition of the perfect bottom so just beware that some like fat bottoms, others tight well shaped bottoms, etc.
Good call. That was pretty close. You could have set your watch by the sell-off at the close before the long weekend.
Pfft.... I'm a bargain hunter on high yield stocks. So even if I buy in at these valuations. I'm pretty darn confident that I'll make some money 4 weeks down the road. As is everyone else who bargain hunts.