Is the fed bazooka really enough to make the market go upwards or are we just witnessing a short term recovery before the downfall beginns anew?
I have never been through this sort of market before while trading, but I have to think that with the earnings season starting to ramp, from now until Q3 we will still lots of up and down. Of course, that is if the current estimates stand that we will not peak in cases until the early summer. But there is certainly a bottom feel happening, from last Monday's prints.
Dead cat bounce. Bring up a chart of 1929 crash and also the 2000 nasdaq crash. You will see after the initial sharp sell off there is always a big dead cat bounce.
I see the recent lows being tested again at least. Full ramifications of the shut down to the economy is still not known. Once some of the losses are erased there will be some that hit the eject button because they’ve been traumatized recently.
YM, NQ and DAX all back on D1 uptrend, stupid stupid times. Oil on the other hand = BEARISH few weeks and they'll be paying us to take there fuel, madness. Got to go up, stop out the bears, trash the puts, basically go against common sense then when everyone stops fighting it, another wave to a lower low, can't let this trading becoming easy, wouldn't be any fun.
I find it simply amazing that bottoms only take a few weeks to form and bear markets last a month while bull markets supposiingly never ever end and last decades. Nearly everyone is saying the bottom is in. That the market will resume its climb... Amazing that not one person predicted this yet they are the same people to say a bottom is in. The fed and their bazooka will once again put a floor under the market, would be very very interesting to know where equities would be without fed intervention. To be honest without market circuit breakers, the unlimited amount of times the discount window can be tapped..the unlimited QE and the free free free free bailouts these markets right now would be sitting 40-50% lower. Once again bear markets last minutes while bull markets last decades.
Chill dude, Its a dead cat bounce. They always happen, need new bulls to sucker in. These same bulls will take the market to new lows when they have to sell.