Originally Posted by graider
market bounced today. is this a real rally or fake one?
Good sir, we had 150 M Volume come in at the end of the trading day. We've had one of the biggest volume supports for this entire month. What Central Banks did today, fundamentally, had nothing to help Europe's Debt Crisis. It only helped bankers get cheaper debt, to dig them out of more debt. And the stocks rallied on China Bank lowering reserves by 0.5%? That's only
an injection of $58 Billion into the Chinese Economy. That news came out first, and caused the big initial rally. Really? I'm lost. That's a scratch. The trade deficit is bigger than that.
Technically and Fundamentally speaking, that should have been a huge short as it implied China was struggling desperately for growth. And sure enough, Chinese PMI came out at 49.0, proving the truth. Question is, is Media going to realize the Central Banks did nothing much today when S&P hits 1280? Will Euro Crisis hit headlines hard again? Wouldn't be the first week of ample good news followed by another week of "record lows". I'll wait till this one out.
So right now, my entire theory is smashed up and I was blinded today in a short position. I'm waiting it out. At the very least, I can hope for a huge rally on S&P to 1400 and then short this thing when it crashes in January, cause that piece of my puzzle is still good, for now. Unless ECB comes in.