this bull shall have legs. likely another uptrend day.
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Folks have been parking cash/proceeds in short-term treasurys for about a month.
SHY (top panel) is like a treasury-money market, a “parking place” for funds awaiting serious investment.
Equity bulls see this as “dry powder” funds available to move back into stocks.
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
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Thinking out loud:
They don’t even need Corporate Buybacks in the current scenario:
Obviously many/most were short
Ooooops, gotta cover
Buy-to-cover (short squeeze)
When will the covering be over?
mmmmm, we'll see it when the squeeze rally relaxes/plateaus/reverses/ends…
Last edited by Al_Dente on Thu Apr 05, 2018 12:31 pm, edited 1 time in total.
Disclaimer: I am not an investment advisor. This is just my opinion NOT investment advice.
Market looking for buyers, clearly found some inside yesterday's range. But not enough to clear Mid/VWAP yet. My guess is a do over is on the agenda later this afternoon.
Longer-term 'recency bias' is telling the Market Mind that breakouts should build on themselves. But these recent (relatively) sharp sudden declines over the past weeks has created a level of "overhead supply" such as hasn't existed for awhile. Price on SPY and on QQQ keeps running into somebody's fib-retrace level, or pivot point, or trendline...and then suddenly stops.
However, earnings season should be a good one. Bsn optimism studies portend this. And the market cannot be said to have fully discounted this possibility, not when it's clinging to its 200day MA. So it may turn out to be a choppy 3 steps up, 2 back, for the next couple weeks... but overall a positive earnings-driven uptrend.
I used this pattern for some years, just for day trading to earn some money. Usually not more then 15% of all account. It's arr 15-20k and quite easy to make some 300-400$ with this ammount, But core account is on trend and only for a swings.
Also, this pattern is good for stocks but for pr metals pattern should be adjusted as it rarely works.
P.S. sorry, it's for Daniel article post
Last edited by victorm on Thu Apr 05, 2018 2:19 pm, edited 1 time in total.