Also, I read some articles explaining that the recent rally was a big short covering. But, after watching this charts, I doubt it. Take a look, I would like to know your opinions.
Dow Jones US Financial Index:
Dow Jones US Real State Index ETF (IYR):
On those 2 days of maniac BAC and C buying, both these stocks formed 25% of the NYSE volume. The stupid Fed was "rebalancing" the stocks which was the reason for this volume. In short, the Fed was buying these stocks causing massive short squeeze.
ReplyDeleteGood point! Yes, may be this is the biggest short squeeze in the last years. I will look in detail the BAC and C charts of the last 2 weeks.
ReplyDeleteThanks Ticker!
Maximialino,
ReplyDeleteI agree, although we might be starting a bearish short term trend I believe the main trend IS bullish and we are far away of making new lows this year.. IMHO.
Patacon, I am in the same side of the market as you at the moment... it is difficult to find a driver in order to trigger a sell-off from this levels. No more Lehmans o Wamu's in the horizon....I am bull in the intermediate term too....may be valuations could justify the bearish short term trend...
ReplyDelete