Full-time stock trader. Follow me here and on 12631
Joined Apr 1, 2010
8,861 Blog Posts

Calculated Warfare



You can see how quickly the dynamics of the market can change. As recently as 3pm. EST yesterday, the bears were large and in charge of this market, before suddenly losing their grip in a fast and furious manner. Today, we are looking at some modest upside confirmation of the reversal thus far. The action is not quite as vigorous as the bulls would have hoped for, but it will suffice nonetheless. Over the coming days, we should see just how much firepower the bulls truly have here. To be sure, the bears will look to reassert themselves sometime soon, and it will only be then that we will be able to figure out how much staying power this sudden turn of events to the upside has.

As an example, note that the basic materials ETF could easily retrace to its declining 20 day moving average within the context of a downtrend, and that would represent a nice score for bulls playing the bounce. However, reversing the entire trend is likely to be easier said that done, as there are plenty of points along the way where bears are highly likely to get off the mat and fight.


Email this to someonePrint this page
If you enjoy the content at iBankCoin, please follow us on Twitter