For the fourth time this year we are seeing a hard buy rotation push into the market. Tracking these strong responsive bids is important, because they represent times when the higher time frame steps in and buys this toxic market.
The third such instance occurred last Wednesday afternoon. Those bids were steamrolled. The first major up rotation earlier this year suffered the same fate, but the second rotation resulted in a multi-day rip. I did a crass write up on the matter. It appears all my charm was burned off while standing too close to the sun.
There were signs of impending buy opportunity over the weekend as well. The New York Times wrote a, “kill the bankers” piece:
— Raul (@IndexModel) February 7, 2016
The hard rally is a key feature to today’s market. The mechanics of investing have changed. Tactical asset allocation is now commonplace for money managers, and with one mouse click they push their clients into risk. This was one of the topics discussed during the second annual iBC Investor Conference. Bulls are looking for the cliche turnaround Tuesday–let’s see if it sticks.Comments »