This bounce should stick throughout the week. We’re so oversold and sentiment is so bearish, it makes sense for us to enjoy a little respite. Short sellers should refrain from adding to positions and instead think about closing them out.
This will all resolve itself during the first week of January. See, people will celebrate the New Year’s in a tenuous manner, relived, yet scared, unsure what to do. It is my belief, might I add, stocks will be destroyed in the first week of 2019, rendering this little rally and the rally to come meaningless — smoke and mirrors in a clown house filled with trap doors.
It has been the worst December ever and there’s a reason for it. We don’t know exactly why stocks are down to this degree, only that it’s happening. I do believe this narrative fits the 2011 market panic and in some ways I reserve the right to completely change my mind about the crash to come. Plainly, I have a bias and I have my beliefs, but am old enough now to know those are just thoughts attached to emotions, the sum total of my life experiences coupled with an intangible intuition.
Ultimately, I am price sensitive and will use the direction of the market as the final arbiter.
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I concur with a caveat: we know how 2011 played out. While many including myself and you (https://ibankcoin.com/flyblog/2011/09/11/) were thinking this is the end, stocks mad new ATH in the spring of 2012.
After the January destruction, are you saying the market will new ATHs in the spring?