Till last week, rather Monday, the sentiments were bearish. In fact very bearish. Then it was a BIG Tuesday. Index moved high and higher for the reasons which otherwise might have been considered bearish. Both UBS and LEH will dilute existing shareholder’s equity by offering shares. It was bullish as investors and traders alike thought worse was over. Bears were caught off-guard and short sellers had a bad day.
I generally don’t watch CNBC, I tuned to it on Tuesday for entertainment and saw that everybody seemed so happy thinking that worst it over. That was also visible in VIX breaking below the 200 days moving average (for short while before rising again today). Of course, most thought that they knew it was the bottom already.
Then there was nervousness in the market yesterday and again on today’s opening.
Now let’s complete the picture, Employment data is due tomorrow? what do you think the markets are going to do tomorrow?
The whole point is “Past was as difficult to predict as future” but many a times we think we knew the past all along…well if you did….write today what’s going to happen tomorrow…and check..
Profitable trading, OP
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