This was the best April Fool’s prank the bulls could have played on the bears!
Almost all the major indices finished up 3% or more. The semiconductors closed up more than 4%. The only thing to fall was gold, losing its 900 handle.
Just a few weeks ago I wrote about the hidden power of back to back 90-90 days and here we are with the market giving us the third one within less than a month’s time:
I also cited 90-90 days when I stuck my neck out on March 12th, 2008 and in the face of all the doom and gloom being plied elsewhere, argued that we were seeing an intermediate bottom form.
To read the original and award winning research paper from Lowry’s that established 90-90 days, go to my free trading resource section and look in the folder: Charles H. Dow Awards. While there, try not to bump into too many other interesting articles and books
Today’s market breadth in both the Nasdaq and the NYSE was lopsided enough that +90% of the volume of stocks traded was up. And only about 9% in declining stocks (the rest were unchanged).
And point-wise, the Dow Industrial was up 391.47 - its 8th largest point move in history. Nasdaq was up 83.65 - kind of takes me back to the heyday when these kind of moves were the norm.
Such volatility was normal during the bubble but during normal market conditions it is a signal that we are carving out a bottom - or attempting to.
But if you’ve been reading this blog, that message isn’t really new to you.
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