Give me ONE rational explanation for Today's rally

Quote from oktiri:

--Job numbers were horrific
--INTC drops guidance drastically
-- Germany officially enters recession

We go lower, -300
THEN WHAT ? WE TEST THE LOWS SO WHAT ? the fact we didn't crash through, DOW gains 550 ?
Where is the logic ?
More...

You make the rather naive assumption that markets are RATIONAL in the first place . . . Haven't you ever seen a market rally off of BAD fundamental news?

Guess you weren't around in 1982, or 1990, or 1998, or 2003.

Learn your market history.
Then perhaps you might understand the FACT that the stock market is a discounting mechanism and is way ahead of current economic "fundamentals".

Good Luck with Investing 101.
:p
 
Here's the reason: you were short

Good luck rationalizing market moves, trying to pinpoint headlines with price action. Especially with the VIX at 60. :cool:
 
Quote from Landis82:

You make the rather naive assumption that markets are RATIONAL in the first place . . . Haven't you ever seen a market rally off of BAD fundamental news?

Guess you weren't around in 1982, or 1990, or 1998, or 2003.

Learn your market history!
More...

yea so true.

There are only a few econ indicators worth following, which are consumer spending, household debt, hourly wages, and unemployment. If you think these numbers will get much worse in the future short now. Few people have the balls to take out a long term short position, despite being bearish..lol
 
It certainly looked odd. Program buying?

Putting aside todays market rally. The fundamentals are breaking down at an astonishing speed.

DOW will be below 7000 by Xmas.
 
Quote from makloda:

Here's the reason: you were short

Good luck rationalizing market moves, trying to pinpoint headlines with price action. Especially with the VIX at 60. :cool:
More...

no, I'm 100 cash % since last FRIDAY. Answer the question instead of sterile personal attacks
 
Quote from oktiri:


THEN WHAT ? WE TEST THE LOWS SO WHAT ? the fact we didn't crash through, DOW gains 550 ?
Where is the logic ?
More...

Thats it in a nutshell the market formed a triple bottom on the daily and weekly chart a very powerful TA signal. If you dont understand that you need to read a few good price action books like the Suri Duddlea one. In situations like this TA is much more powerful than fundamental data especially with the market so oversold
 
Quote from Bogan7:

Thats it in a nutshell the market formed a triple bottom a very powerful TA signal. If you dont understand that you need to read a few good price action books like the Suri Duddlea one. In situations like this TA is much more powerful than fundamental data especially with the market so oversold
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and if it broke through, you'd be telling us that it was a tripple bottom breakdown, with the same 'authority'

the one thing the OP needs to learn is, that it can and will do anything, at any time, and it will not explain itself to anyone
 
Quote from oktiri:

--Job numbers were horrific
--INTC drops guidance drastically
-- Germany officially enters recession

We go lower, -300
THEN WHAT ? WE TEST THE LOWS SO WHAT ? the fact we didn't crash through, DOW gains 550 ?
Where is the logic ?
More...

Even a dead cat will bounce if dropped high enough.

dead_cat_bounce.jpg
 
Mate trading is simply a game of probabilities but the prob of the market driving higher retracing after testing the recent double bottom is in my opinion much better than looking for a breakout to the downside with the market so oversold a lot of traders would have been taking off shorts around those levels as well. Who is left to sell it?
 
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