After all, since the meltdown this Meltup has been induced, not natural investor confidence.. Let's not forget this FAUX rally LOL
By: Mark Hanna
Posted on: November 14, 2012 at 8:20 am
I keep harping on this "emotion" aspect of the selloff – there has been really none to it, as the selling has been orderly if persistent. Except for a few sessions losses have been quite contained at the index level even though a lot of individual equities have been hammered tremendously. In a way this is the opposite of when a healthy market sees sector rotation – one group rallies, then rests, and another takes the baton and so on. The same has been happening but to the downside. Need there be an "emotional" type of "pukey" selling to mark at least a short term bottom? Nope, but it would make it easier to identify a short term reversal.
With all that said we are now seeing some substantial oversold readings in some supporting indicators. That need not mean things cannot get more oversold – it just serves as a warning that a sharp short term reversal can happen anytime. That said the action yesterday was just as bad as Friday's when a sharp intraday rally was decimated – at least Friday's could be blamed on the speech by Obama, whereas yesterday's was just out of the blue. It remains an environment only for daytraders or those with multi year viewpoints.
This morning we open to (wait for it) futures up. This after what is called a bearish engulfing "candle" yesterday on the S&P 500 chart. Ironically just hours before the close it was a bullish engulfing candle but that is how quickly this market is moving. Engulfing simply means the entire previous day's range was surpassed…
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http://marketmontage.com/2012/11/14/reaching-oversold-but-without-emotion/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+marketmontage%2Fxyz+%28Market+Montage%29
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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