When I heard FED Chairman talking from CNBC this morning, my guess is that he would provide the stimulus for the bull, at least for one day. It turns out more convoluted than that, the bulls and bears are fighting all over the places in the morning, by the afternoon, the bull finally seized control.
There are more “short coverings” than “longs”, as noted by bespoke, the most shorted stocks are up the most, collectively they are up more than 4%.
It is not surprising, since the market is oversold for sometimes. If you put your faith on RSI, you will notice that RSI of DJIA and SP 500 have been under 30 for quite sometime, and today, they are broking above 30, and that is one reason I believe attract day traders.
As a cliché, one day does not make a trend; we will have to see how the market reacts in the next few days. And it will not be surprise to see market to resume its downward once again.
Earning season is here, there could be more volatilities. People will juggle their positions based on “miss” or “beat”. so, be prepared to act quickly
