Saw some serious strength yesterday at the close. The market was down over 2% and then rocketed up at the end. At the bottom it was the lowest point in over a year, then in the last hour of trading, the market rocketed up. The strength was mostly short covering, but no sellers means no more down side. We need buyers to step in to truly reverse the direction, but I am anticipating this will start happening today as large players see the market start to stabilize.
If you were looking for a time to put some money into the market, it might be now.
More importantly, my end of day analysis showed strong divergences that we have hit a short and (possibly intermediate term) bottom. Signals that haven’t triggered in a few months.
We ideally should have a strong day today for confirmation and if we do, then I would encourage that if you’ve been waiting to put some cash in the market, now might be the time.
Can I be wrong? Of course! Do your own analysis and come to your own conclusion, but I personally am most likely closing all my shorts and going long.
I only had 5% short yesterday and roughly 40% long (been adding to longs in the last two days), but today I will most likely be 60%-70% long and 0% short.
Hope you have a great day.
Fyi, if you have any questions about this email or related to the market, I’m happy to help!