The shorts have been squeezed to death. They are as dry as the Sahara. No more juice left in them. They are masochists fighting this rally. The rises are faster than the dips. That is unusual. Fear should be a stronger emotion than greed. Obviously this market still remains very short. So fear shows up when the market goes up, not down!
The big volume bars on the 1 minute charts have been on the up bars. Which means massive buying/covering in an instant. Fundamentals remain terrible so eventually the rally will be retraced, but only after the last short is squeezed. All those October puts are officially worthless.
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MO, please explain. If shorts have been squeezed to death, then why does market shoot up with such acceleration? Would it not be that there are still plenty of shorts left to squeeze? Do we go to 1260 before 1160?
i read that funds were net leveraged short beginning of october. they may have unwound some of that but that takes longer than 2 weeks to unwind. u have alot of short term traders shorting now along with undervested funds buying. that all translates to triple buying.
Yes, there are still shorts left to squeeze, but I would say the majority have covered over the past 2 weeks. The steadfast shorts still remain, and they will be taken out within the next couple of weeks. 1260 will be tough, there are going to be a ton of get me out sellers at 1250 if we get there. You have the market struggling here to burst past 1220, we probably top out between 1235-1240, to frustrate all those looking to sell at 1250. From the top, we probably have another trip down to 1100. But let's not get ahead of ourselves.
MO any thoughts on tomorrrow
No strong opinions about tomorrow. Just watching for now.
well, in fact in a bull market slow grind up is interrupted from time to time with strong abrupt corrections, and a bear market should be opposite, no?
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