DOW

8:15 am: Bank of America clients sold stocks last week
Bank of America Securities clients sold $3.2 billion in U.S. equities last week while the S&P 500 gained nearly 5%. The clients bought ETFs and sold single stocks for the fifth straight week. “Selling was broad-based across client groups, where hedge funds and retail clients have been sellers for the last eight and five consecutive weeks, respectively,” Bank of America equity and quant strategist Jill Carey Hall said in a note. “Financials led the outflows last week with its second-largest selling in our data history since 2008 — consistent with the record low investor positioning.” — Fitzgerald

remo wrote: Normally 61.8 fibs will contain the move but once that gets taken out and it hits the 76.4 fib level then that normally signals a full corrections to the trend prior ...I’ve seen this happen loads of times in the past so hence why I suspect a full move back up....I must say thou, on paper it should be heading down big time as common sence says it should...lol...There is so much manipulation going on so you just have to follow the charts and right now it’s bullish...
I will still look to short myself if I see a reversal but it won’t be with big shorts again as this market has been deadly to shorts recently..

If a second wave happens with regards to coronavirus then you can see the markets visiting the lows again...
Right now it’s all about the virus and how it plays out...

Hi Remo,

Thank you for the above (hope you and the family are well).

i've been reading about this, and indeed 76.4 doesn't really hold much weight compared with 61.8; here's the thing - does anything work right now with all the intervention? Technical Analysis still works obviously - like musical notes someone once said - but for me, it works for the short (ultra short term due to much intervention).

I can't say that I walked away unscathed either - it's just part and parcel!

I would however say that there's a lot of "air" underneath this rapid move up. (and forgive me, will need to get a chart - but are there island reversals patterns again? it looks like it).

Anyway, back to the point on "air" underneath - without structure, surely - intervention or not, the market needs to revert to the mean.

Will keep powder dry - but as i type, the Dow (futures) is down 300 points - could be something could be nothing.

Normally 61.8 fibs will contain the move but once that gets taken out and it hits the 76.4 fib level then that normally signals a full corrections to the trend prior ...I’ve seen this happen loads of times in the past so hence why I suspect a full move back up....I must say thou, on paper it should be heading down big time as common sence says it should...lol...There is so much manipulation going on so you just have to follow the charts and right now it’s bullish...
I will still look to short myself if I see a reversal but it won’t be with big shorts again as this market has been deadly to shorts recently..

If a second wave happens with regards to coronavirus then you can see the markets visiting the lows again...
Right now it’s all about the virus and how it plays out...

remo wrote: The fact that the 76.4 % fib has crossed imply the Dow will head to new highs soon...
So be really careful with shorts .
You need lower lows to start going short...
I’m fully invested currently but will keep a close eye on them....

Well, i don't mind saying, I'm side stepping this. I know my own limitations, and this market is a bit too complicated (for a lack of a better word!) for me.

And, the more i study it, or try to - the more confused I become.

The fact that the 76.4 % fib has crossed imply the Dow will head to new highs soon...
So be really careful with shorts .
You need lower lows to start going short...
I’m fully invested currently but will keep a close eye on them....

DOW fibs