Stock, how much money did you make today? We all know the annswer is nothing, you actually have to have a REAL posistion in order to make money, demo accounts are not real accounts, you would think as smart as you think you are, you would know that.
Put to call ratio came down pretty hard in the last week, and we still haven't broken up out of the downtrend from Feburary for the S&P (as of today). I'm bearish.
This rally provides hedge funds facing 1st quarter redemtions an opportunity to cash out of positions. It will be interesting to see what happens next week with futures and options expiration. I expect a lot of volatility and perhaps a move to the downside erasing this weeks gains.
Q1 ends end three weeks, stock index futures are rolling over next week. Seems like a good time to force the shorts to cover.
A perfect candle on the S&P on high volume. Those are rare. In my book, thats a good sign for more gains in the next few sessions.
I agree with this. What happened today is a bit of good news (Citi's not dead yet) combined with real bargains from the recent selloff invited bargain hunters (RIMM in the 30's! AAPL in the 80's! GE in the single digits! and so on) to grab some positions, leading shorts to cover, leading a few more buyers to get in quick before the price gets away from them, leading more shorts to cover. I too believe the funds are waiting to take advantage of this run up, and since no one at this time wants to pay 50 for RIMM, 100 for AAPL, or double digits for GE, there is a cap on the upside of this rally, and it WILL be beaten down by short sellers and fund liquidation.
No! Over sized run ups still indicate a broken system. When we eek out 400 points over the course of the month I'll say the market has bottomed and turned. Until them, short every sucker rally like this one.