Just savage. They took a knife to the bear's heart in the overnight SPX futures Sunday and twisted it during regular market hours. That last burst out of nowhere was probably a mixture of short covering and some pension rebalancing. And now we have another monster gap up after a monster up day. This is why you cannot overstay the short side because of these vicious counter trend rallies after a waterfall decline. This one in particular is one of the biggest face rippers I've seen in my trading career.
If you can't understand why we're going up so quickly, then don't trade it. I am not trading this one here, its not a typical post waterfall move, and it kind of sneaked up on the bears after looking weak last week. Can't explain why this thing suddenly decided to break the 2450-2630 range with such savagery, but you have to stay out of the way when you are wrong. Being stubborn and refusing to take losses in this business will destroy you.
The last 36 hours of trade has wrecked my forecasts, and its back to the drawing board, to contemplate what's next. My theory on why we're rallying so hard is the absurd amounts of Fed liquidity ($125 billion/day = $2.5 trillion/month rate) is lifting all boats, as the money finally goes out of bonds and cash and into stocks. Plus, let's remember, the $2 trillion bailout is just giving people and corporations/small businesses free money and that money is looking for a home. And when you can't spend it or would rather not go out, then its quite convenient for those who get the money to buy stocks with it.
All these gigantic bailouts increase the money supply, because debt is not being repaid, in fact, debt is increasing and being monetized by the Fed, so it is helicopter money. And the Fed isn't even shy or bashful about it, the Powell Fed is the most aggressive money printer in the history of the U.S., by a mile, and I wouldn't be surprised if the Fed became the biggest buyer of stocks if the SPX breaks 2000 and enters a steep bear market. In fact, I would be surprised if the Fed DIDN'T buy stocks.
Not easy to make sense of these rapid moves, so laying low for now, waiting for an opportunity to short again, but want to wait for the upward momentum to die down a bit.
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11 comments:
I think people were expecting further downside after this bounce so why not rip their faces off? The amount of liquidity is making this market violent in both directions. Some people think their is a new bull market in the offing, others that the system is still unwinding. Best to take some time off :)
Right, a lot of people caught with their pants down, and underinvested fund managers are scrambling to keep up with the averages. Crazy market and I think we'll go much lower eventually but it will take a while.
2900 should be top of the move dawg. Getting short on Friday or Monday.
Market gone full on retarded now.
Getting closer to your 2900 short zone. Mother of all short squeezes, Fed has the bull's back.
I think anything over 2800 should do it now but ideally close to 2850. One more pop on Monday
They doggone did it now dawg. 6 trillion dollars pumped into the economy with unlimited qe. Maybe another 2 trillion coming. The bottom is done. New highs by the fall followed by another 30 percent correction in the winter. A 99 cent cheeseburger is now going to cost 5 dollars. The spx going to 4000 next year
Maybe another 2 trillion? Maybe. No, Definitely AT LEAST 2 trillion. My guess is another 10 trillion from idiot Pelosi and Trump before 2020 election to try to goose the economy and bribe everyone to vote for him. Nancy Pelosi could care less if Biden loses to Trump, she wants to deliver as much pork to her sugar daddies as she can before the crisis is over. "Never let a crisis go to waste".
99 cent cheeseburgers still exist?
Burger King has 1 dollar jr cheeseburgers. Mcd has the dollar menu. Del Taco has tons of stuff under a dollar.
US government should demand reparations for coronavirus lies and deception from Chinese government. AT least $2 trillion! If they don't pay, put on tariffs and sanctions.
Inflation will go through the roof once coronavirus vaccine is developed and US companies stop outsourcing to China and people have all the stimulus money burning a hole in their pocket.
I mean we dont know if china is the culprit. I mean i see they tried to hide things. But I think the DNC or Gates or Illuminati did it to cause a NWO. We gonna get mandatory vaccines soon which is like mark of the beast kind of shit
China is the worlds manufacturer. Truth be told without them wed all be poorer. Everything is made over and cheaply too.
One thing for sure though if the market were a fishing trip this is one of those trips they call WFO. Wide fucking open. Its a damn feeding frenzy out there right now. These moves are cross eyed retarded
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