After this morning's buy the dip knee jerk reaction, for the first time in a long while some dip buyers find themselves underwater. Until a pattern breaks, traders will repeat it indefinitely - the fad since QE2 was hinted was buy every dip. What has changed nowadays is these patterns don't reverse for a very long time. Aside from some trouble in November due to Ireland, this has been the only trade in the market.
Still nowhere near the 20 day moving average - much like a month ago when I mentioned this was my line in the sand, we are nearing it close to the end of the month. But with the first of the day month effect almost always leading to big up days, that was reversed quickly and it's been non stop upside since.
Tuesday, February 22, 2011
Dip Buyers Feel Pain for First time in.... a While
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows