Tuesday, January 11, 2022

shorts are bailing out, but the bulls aren't buying

My eternal question: what is the cause of the up-is-down-and-down-is-up phenomenon?

New thinking: On a day that looks like bear, but down is up, that is shorts bailing out/covering. That doesn't mean that bull setups will work... that requires bulls to buy.

So, this phenomenon would happen in a bearish climate, when the bears take profits, sending weak stocks up. But it's still a bearish climate, so bullish setups are also subject to profit taking which sends strong stocks down.

Solved!

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