So it went oversold on CPI and bounced because that's what the algos do. I think this is just algos and short covering, can't imagine long term investors are buying in with the bad news, I mean my 401k is still all cash. I'll wait until the Nov Fed meeting at the earliest.
Indicators are neutral now so tomorrow is a crap shoot. Following my 4 day short squeeze rule for now, but might go short tomorrow if we get a huge pop like last week.
Earnings start with banks tomorrow. Guidance will suck.
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Also, old support is new resistance so I drew a line there.
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People always ask me why 3 hr charts, look at today. Daily, hourly or weekly wouldn;t have told you we'd get a reversal and pump
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Note that it's already a 5% pump today from the low to the high, quite the pump
Indicators show no direction for tomorrow, though Europe looked pretty bullish
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The algos have to make their money, lol. Pump and dump, I think I'll wait until EOD tomorrow, and buy a few puts just so I wake up Monday morning.
4 day short squeeze rule says not to short until Tuesday morning though.
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I think reality strikes the market tomorrow with earnings, bought into some XLF puts, next week's expiration
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Snagged a few BITO (bitcoin) puts as well, I think this is a bull trap
Yields climbing now
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TBH, this reminds me of 2007, housing prices are just starting to fall which means this is just the beginning, not the bottom, lol.
These bounces are good for short term play, but if you're the type to buy and hold, wait until next year. Zero chance that today was the bottom.
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Reality strikes the market, my babbling yesterday was right.
Like I keep saying, NOTHING GOOD CAN HAPPEN WHEN THE MARkET PUMPS BAD NEWS.
I expected the response to "meh" banking earnings to be worse than this. Especially considering the technical bounce yesterday.
hungry_hippo
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@BoomerMo, for sure considering it's gonna get worse
ProjectSyndicate
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perfect perfect. great target
thelion01
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Agreed that is just the beginning- inflation still very high! And there are other problems too beside inflation…
hungry_hippo
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@thelion01, it's not over until Wayfair goes bankrupt, lol. They won't be the only company, this is just like the Dot Com bust. Best guess is that we hit bottom in about a year from now.
The problem is trying to figure out down days vs up days. My indicators worked today though.