A number of the technicals were starting to scream sell; a strong sell came from the McClellan (AR) Oscillator which has been descending and was just touching zero (sell at zero when the signal line comes from ablove) late last week.
Your comments on the traders playing out the sentiment and momentum play are interesting because there are in for a day on a day trade or a couple of days on a swing. This is is exactly why the four junk stocks have acounted for 30% or so of recent volume.
Without delving into the fundamentals of this market, which in a manner of speaking do not exist or are either weak, the moves since the 666 lows of March have been characterized by low volume, imbalances between large cap and small cap, low grade issues enjoying big moves and serious and unrestrained excesses in valuations.
Post Traumatic Crash Disorder? [View article]
Your comments on the traders playing out the sentiment and momentum play are interesting because there are in for a day on a day trade or a couple of days on a swing. This is is exactly why the four junk stocks have acounted for 30% or so of recent volume.
Without delving into the fundamentals of this market, which in a manner of speaking do not exist or are either weak, the moves since the 666 lows of March have been characterized by low volume, imbalances between large cap and small cap, low grade issues enjoying big moves and serious and unrestrained excesses in valuations.