it was a bit surprising and disappointing to see the bulls unable or unwilling to circle the wagons and defend their positions out there today. This leaves me to assume that traders still had to exit out of bull-trapped positions (probably established over the past two months as people gave up on waiting for oversold conditions for entries) and were still in the puking stage as stops were triggered in the weakness.
In my view, this high-short contingent and oversold conditions sets the stage for a snarly snapper. However, if it doesn’t show up soon, the rush for the exits will be something to behold and the long-awaited “aversion phase” we knew was coming our way at some point will be fully underway.
I have said it before but the present is as good an example as any. For every thousand opinions, there are a thousand more saying the opposite or different. The current market behaviour is akin to the fella running along the fence-line with the bulls on one side and the bears on the other, and completely stalled and unable to go one direction or the other. The pent-up indecision has the makings of a spectacular show, which ever the direction.
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