I must be alone in the world in explaining that the financial markets are not just rigged overall but on a second by second basis. Today;s rally is being explained as being a short squeeze or a dead count bounce. It is neither.
This is an organized effort to restart and maintain the bull market. If the ALGOS can make a snake, they have substantial control over the market. So, they do in fact still have plenty of control over the market. ‘
To accomplish this task, a low volume atmosphere must be maintained. Long term holdings must be kept off the market. How are long term holdings kept off the market. All it would take is phone calls explaining to potential sellers that prices are going up. The word is, you will get a better price. We will see to it that you do.
Have you ever seen a true short squeeze? With a short squeeze, the averages would not gap up and then stay in a consolidation pattern for the balance of the day and then resolve upward at the end of the day.
As of yesterday, still, only 14 percent of stocks were above their 200 day moving averages. This is not a dead cat bounce because only a few stocks are actually bouncing. A handful of stocks are rocketing.
From here on, the market will rise as much as it is possible to make it rise.
With respect to market manipulation, the consortium doing the managing knows you a lot better than you know them. They are also far more intelligent than I am.
One thing that is generally not recognized is that they have enough buying power to move the market based on their own buying power. As they are successful in doing this, they have nothing to lose as long as the market doesn’t go down. One unrecognized aspect is that there is an ongoing effort to consolidate asset ownership among a handful of elites.
So, how long will this new chapter last? It will last as long as they can make it last. When the effort fails, that is when it all collapses. I am not counting on that happening today, but who knows? Chances are that it will look like the averages are about to collapse for the entire trading day. But, at the close, there will be a rally. Goal one is to close at the high for the day. If that doesn’t work out, then the goal is no black candles. For sure, the market must not be down for the day.
As long as there isn’t a complete collapse, trading will begin in the morning with a new and improved plan. Look for low volume for the foreseeable future. Look for the averages to be slowly ratcheted higher over time. We have all seen this game plan before. Despite the negatives, this can go on for a mighty long time.