Grizzly Bear snacking on berries, h/t Drew Rush / NatGeo
After an early bounce, tired bulls are on the back foot. Hungry bears are selling. When asked why the market moved up or down on a given day, my dad would answer in his Brooklynese, “Sometimes the bulls gotta get fed and sometimes the bears gotta get fed.”
Shift to Reverse
Are stocks off to the races or set to reverse course?
Analysis and Outlook for the QQQ (Nasdaq 100 ETF):
The Qs are rebounding sharply from their Christmastime low to today’s high. We see shorts getting squeezed and the weaker hands being weeded out. Tech stocks have steadily moved through resistance to reach higher levels of supply. In the aftermath of December’s waterfall decline, they’ve driven a good distance up in a short amount of time.
A big boost in central bank balance sheets, in large part courtesy of stimulus by the People’s Bank of China, has pumped in the liquidity needed to stave off impending disaster for investors. The key question now is, “How high are we going to go?”