The bears and the dip buyers | stockbee


The bears and the dip buyers

  • Market were down premarket Wednesday morning to news that the Shanghai Composite Index had shed 6.5%. The Chinese government is trying to avert a disaster. Weakness across Asia and Europe had the bears excited.
  • But that action also excited dip buyers sending the market higher for the rest of the day.This was a classic bear squeeze. Month end also added a bit to that squeeze.
  • A good thing about yesterday was number of stocks with good earnings lead the action higher.
  • All the numbers , 65 days 25% plus, 100 and 200% plus and month 25 and 50% plus are in new high territories. So unless we see a major negative catalyst or 300 plus breakout on negative side, this rally has more time on its side.
  • A new set of sectors have started a move up in last couple of days and that is getting reflected in the 4% breakout list clearly.

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