Seeking Alpha

E Nuff Sed » Comments » ADM

  • This Rally May Have Legs - Bespoke [View article]
    Bespoke are not money managers but analysts and I think they are right.

    The powerful high volume rally we have experienced in the last 3 weeks is no fluke. It is a good old fashioned short covering + buying panic.

    My own study of past 4 bear market bottoms suggest that bottoms are marked by powerful rallies with large volume (15 - 25% gains in 3 to 5 weeks). We have gained 20% in 3 weeks, with high volume.

    This is not to say its straight up from here. In fact in the next 2 -3 weeks we will enter a period of consolidations where traders will take profit and bears will start shorting again. We will give up a big portion of the current gains (50 -80%) but will not break the March 6 lows. So by all means short the market but be prepared to cover your shorts fast.
    Mar 29 14:37 pm |Rating: +13 -2 |Link to Comment
More on ADM by E Nuff Sed
Comments by Ticker
AA, AAPL, ABB, ABK, ABT, ABX, ACAS, ACV, ADI, ADM, ADP, ADRE, ADVNA, ADVNB, ADVS, AES, AFL, AFN, AGN, AGNC, AGQ, AGU, AIG, ALGT, AMD, AMGN, AMZN, AN, ANH, APA, APEI, ARDNA, ARO, ARST, ATPWF.PK, AVP, AXP, AZN, AZO, BA, BAC, BAM, BAX, BBBY, BBT, BBVA, BBY, BC, BCR, BDX,
E Nuff Sed's
Comments Stats
568 comments
Rating: 125 (681 - 556 )