THE OUTRAGEOUS "RALLY" AT THE END OF THE DAY TODAY WAS SO KOOKY THAT IT DOES NOT REALLY DESERVE COMMENT...
AND HERE'S WHY...
1. EXTREMELY LOW VOLUME!! 1.6 BILLION SHARES... THAT'S SORT OF AVERAGE VOLUME FOR MID-WEEK IN JULY...ON A NO NEWS DAY...!
ANY "POST WASHOUT" RALLY NEEDS HUGE MEGA-VOLUME...AND CERTAINLY NEEDS MORE THAN A ONE HOUR RUN AT THE END OF THE DAY...! GIVE ME A BREAK!
REMEMBER, BEAR MARKETS CAN AND DO HAPPEN ON A SERIES OF LOW VOLUME DAYS...
BULL MARKET INFLECTION POINTS NEED HUGE MEGA-VOLUME ON THE VERY FIRST DAY...AND THIS WAS NOT IT...!
2. THE "RALLY" OCCURED RIGHT AT THE END OF THE DAY...SO WHOEVER OR WHATEVER WAS BUYING STOCKS WERE DOING IT ON THE CHEAP...
KNOWING THAT THE "GAINS" WOULD HOLD ONLY TIL 4PM ...
ONLY LONG ENOUGH FOR A "HEADLINE" TO BE WRITTEN...AND LITTLE ELSE...EXCEPT MAYBE TO PRIME THE "SUCKER PUMP" FOR TOMORROW MORNING...
IN THIS MARKET...THE HEDGIES CAN'T SELL OUT, UNTIL SOME RETAIL SUCKERS PUT UP THEIR MONEY...!
3. THE MARKET WAS HUGELY OVER SOLD...AND SOME KIND OF SNAP BACK WAS NECESSARY AS A MATTER OF PHYSICS...NOT ECONOMICS!!
4. THE MARKET WAS A SHORT SELLERS NO BRAINER...AND OF COURSE THE MARKET DOES NOT TOLERATE NO BRAINERS FOREVER...
WHO WAS "BEHIND" THE RALLY...
WELL, SHORT SELLERS WERE COVERING LIKE MAD IN THE LAST HOUR...FEARING A LITTLE MORE BUYING AFTER THE FED MEETING TOMORROW...
OR, FOR A CONSPIRACY... THE FED SHILLS WERE TRYING TO BLUNT THE EFFECT OF THE RECORD LOW CONSUMER CONFIDENCE NUMBER...WHICH SUDDENLY BECAME A BACK PAGE STORY AFTER THE "RALLY."
IS THE SHORT COVERING OVER...? WILL THE HEDGE FUND LIQUIDATION START UP TOMORROW...? PROBABLY...
BOTTOM LINE:
SELL ALL "HISTORIC RALLIES" THAT OCCUR ON PISS POOR VOLUME...
THIS WAS A JOKE TODAY TO ALL SERIOUS MARKET WATCHERS...
I WONDER HOW MANY RETAIL SUCKERS WILL TAKE THE BAIT TONITE AND TOMORROW AND "JUMP IN" SO AS NOT TO "MISS THE BOAT...!"
LOL...!!
