Why no pullbacks in this rally ?

Tons of funds shorted the October selloff. Many investors took profits in the aftermath of Katrina/Rita/Wilma and $70 oil. A few more sold deep OTM calls that blew up into deep ITM calls. All of that short covering equals a LOT of buying pressure into these thin markets. Not to mention 1245 in SPX was not some random high. Any of you guys who use measured moves with a bit of creativity know what I'm saying about that level.

The longs correctly guessed that the shorts were hung and haven't been interested in supplying much stock to let those guys out. Last I heard this is an auction market, eh?
 
Quote from dac8555:

to me the rally is a pullback. the overall market trend is downward, we are in the correction.
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dac8555,

From reading your posts on this and other threads, it seems that you are completely convinced of your take on the market (i.e. short). Even if you eventually turn out to be right, your views can do a lot of damage to your account in the interim. Keep in mind what Lord Keynes said that the markets can stay irrational a lot longer than we can stay solvent.

Having said that, I do think that we are overdue for a decline/ correction. However, whenever there is a significant divergence between what I believe and what I see, I just stay in cash.

Happy trading to you.
 
I guess there will be no pullback but it will be a big drop of more than 50 points on S&P, 500 points on DOW, 100 points on Nasdaq in next few days. I won't buy unless the above happens.
 
Quote from niting:

I guess there will be no pullback but it will be a big drop of more than 50 points on S&P, 500 points on DOW, 100 points on Nasdaq in next few days. I won't buy unless the above happens.
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that would be the gift everyone wants\needs and shorts are praying for. that is why it will not happen.
 
Interesting take from Cramer

Cramer mentioned that hedge funds are feeling pressure and the average fund may be up about 8% to 12% this year because of good short selling strategies. Cramer thinks that all is about to change.

Cramer believes hedge funds have no choice but to cover their shorts and go long, lest they see their gains for the year wiped away.

The individual investor is back, said Cramer, and that investor cares about the market for the first time in six years, he said. They won't stop caring in a day or two, he said.

If Cramer were at his hedge fund, he'd tell his team no more shorting for the rest of the year. "It's too late to short. It's time to buy," he said.
 
Quote from vhehn:

that would be the gift everyone wants\needs and shorts are praying for. that is why it will not happen.
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And what the longs pray for come true? this is nonsense .. market doesnt care about long or short.. it will go up and down however it wants....

People that went long made a ton of money eventually they will cash out and the shorts willl also try to ride the move down.. it will come down to the dip buyers to hold up this market....


--MIKE
 
I just can't believe that Cramer.. Joey Batts and Abbey.. all came out at the same time in Oct and called major bottom...


must be in a parallel universe or something... geez
 
Quote from Trend Fader:

And what the longs pray for come true? this is nonsense .. market doesnt care about long or short.. it will go up and down however it wants....

People that went long made a ton of money eventually they will cash out and the shorts willl also try to ride the move down.. it will come down to the dip buyers to hold up this market....


--MIKE
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one of the reasons the market is so relentless on the upside is because too many are on the wrong side. you are right. eventually enough will switch sides that it will pullback. its not going to be 500 points on the dow in the next few days as the last poster said though.
 
Quote from EqtTrdr:

I just can't believe that Cramer.. Joey Batts and Abbey.. all came out at the same time in Oct and called major bottom...


must be in a parallel universe or something... geez
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cramer never stopped being bullish over 1 day, abby is always bullish, bats i remember him saying be cautious right at the bottom last month.
 
Quote from EqtTrdr:

I just can't believe that Cramer.. Joey Batts and Abbey.. all came out at the same time in Oct and called major bottom...


must be in a parallel universe or something... geez
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Why is that such a mystery? Happens almost every year. Market bottoms in Oct and rallies in November. Not brain surgery.
 
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