The Rally is Not to Be Trusting
- Thread starter Brandonf
- Start date
After such a huge move up as we had yesterday it would have been very rare for the market to move much higher today, even if the move yesterday was a bottoming one, which I do not think it was. The typical pattern after a huge move up is for the market to just chop around for a few days to digest that move. With this week being a holiday week (Friday's Good Friday) some different dynamics could be working in that regard. In any event, yesterdays volume should have been much higher. The extend of the upside move though does show the danger that shorts face even in a bear market, because the up moves can be swift.
I too was trying to trust the rally and check my shopping list last night. Trying to find one stock rallied with high volume. And, surprisingly to me, not to you guys, all prices have high jump and volumes remain same.
Now, even the commodity falls, people don't trust the stock, bond, gold, oil and gas, soy bean. Did you hear even Tempurpedic mattress has fault? Can't even put the money under the mattress.
Sorry, I'm so pessimistic. But after all that Fed did, stock doesn't hold up and now not even commodity? Will any commodity come back up?
I have a small position in one agricultural. Is everyone screaming out and not getting back in?
Better pull up the hood and take a closer look at today's (non-surprising) selloff.
The leaders? Financials. The stocks getting absolutely killed? Energy and commodity-related. If this trend continues, it's a good thing for the broader stock market, even if it causes pullbacks along the way. Oil/energy prices and stocks are inversely correlated. It's one of the strongest correlations that exists. Academic studies have shown this as well as my own testing. You have to get past the daily noise, though. and look at weekly/monthly trends for oil prices.
It's much more reliable than stocks and interest rates, for example.
The leaders? Financials. The stocks getting absolutely killed? Energy and commodity-related. If this trend continues, it's a good thing for the broader stock market, even if it causes pullbacks along the way. Oil/energy prices and stocks are inversely correlated. It's one of the strongest correlations that exists. Academic studies have shown this as well as my own testing. You have to get past the daily noise, though. and look at weekly/monthly trends for oil prices.
It's much more reliable than stocks and interest rates, for example.
