Suckers Stock Market Rally or Stock Market Rebound
The Stock market was positive yesterday.The COMPQ led the way with a gain of .70% while the SPY was higher by .28%. The small caps also did well with the Russell up by .93%. The question I have had in recent discussion is…
Is this a Suckers Stock Market rally or a stock market rebound?
My answer is that my crystal ball is not plugged in and have to take it day by day. Currently I am short the SXE and long the VIX. My Vix trade is not working and may not work. However the SXE has shown some nice profit. The concerning issue if we are truly to have a stock market rebound is that…Volume again was an issue. It was even lower than Friday, continuing the pattern of high volume declines and low volume rebounds. We now have two rally days in a row off the lows on lower volume. In theory you want to see rebounds with strong volume. That is why this rally is suspect.
Time will tell…Do not have opinions, rather have a trading plan based on rules without emotions. If you need help with becoming a better trader I offer one on one personal hourly mentoring. Just email me