Crazy action | stockbee

8/08/2007

Crazy action

Last night when I went to bed it was around 1 PM in USA and I was looking at some really crazy numbers on all scans(India is around 10 hours time difference, it is 7 A.M. here now as I write this). I thought the data is corrupted. Several stocks were flying. The small caps were melting up like never before.

First thing in the morning I triple checked the numbers.
1063

1063 breakouts on upside within few days of market taking a severe beating and after 2 days of back to back 300 plus upside breakout days is really crazy action. Looks like massive asset allocation or re balancing trade. That seems to have squeezed shorts mightily.

This is pure delight for day traders.

12 comments:

Mike Summers said...

It looks like not only are the shorts covering, but many of the people that shorted used that capital to go long, many got flushed out and had so much cash they all loaded up. Remember record amount of shorts, still a lot of squeezing to be done... But don't overstay your welcome because after a rally the shorts could return. Here's to hoping this is the start of a booming rally. :)

Another Brian said...

Perhaps assets are being reloacted from the sub prime sector too.

Another Brian
tsxtrends.blogspot.com

Stock Market Detective (SMD) said...

Looks like market moving to the highs soon. Shorts covering to push it much higher.

No news of any "Market Meltdown" after the bottom hit on Monday.

65Trader said...

SMD - I'd like to read your views on your blog, but it's only open to 'invited readers only' Whats up with that?

F. said...

Nah, don't get too excited. Although it's probable we will go somewhat higher in the very near term, I wouldn't be surprised if we rest the lows within the next week to 2 weeks.

Mike said...

Hi Pardeep, hope you are enjoying your time in India.

I am confused. Is it time to buy good stocks or best to just sit in cash. Again the market today is tanking big with more sub prime horror news.

Take a look at POT. It is holding its high in this correction and even holding even today despite analyst downgrade. Looking to buy this one but so scared that it will also roll over like most all other great fundamental stocks. Would you sit and just watch POT or would you be a buyer given how strong it has been through this entire correction (fundamentally it is VERY strong so not just some momentum play based on hot air).

thanks,
Mike

John V said...

Mike:

I don't know enough to even shine Pradeep's shoes but if I don't understand the market situation, I sit out. This is one such time. I feel good watching all this action without having to bite my nails! I've made some small successful intraday trades (scalps), but as far as any long term stuff. no way.

John

Kenneth said...

Hi Pradeep:

Instead of enjoying tour vacation in Pune, I am sorry to see you keeping awake till 1 AM and crunching the data.

Have rest and fun and come back home fully refreshed.

I think the stock market here is manipulated as we see heavy buying in the last half hour and selling in the morning. I would like to preserve my capital and watch from sidelines.

F. said...

I tried to warn of the risks in buying yesterday. I said it was late. If you are holding long term you are taking a good amount of heat.

65Trader said...

Where's that picture of the screaming kid? Do you want to buy dips now?

christmasfern said...

Watch out for the emerging markets. The emerging market stock markets could take a fall and drag us down again even if we get through the subprime fiasco.

Ideally I would like to see this correction last longer and more things go wrong all at once so we can get it all behind us.

Mkt swimmer said...

Hi Stockbee,

I am a newcomer, I don't remember how I found you, but I am impressed by your systematic approach.

I tried to make some comments to you, but I was not able to until I created my own blog -- MarketSwimmer.

I am trying to do my own part, I am trying to use a computer program to select buys and sells based on your lists and also based on the market conditions.

I don't know if that works, but if you can take a look and if you like it, please put a link on the right -- really appreciate.

Mktswimmer.