Stocks are sprinting higher across the board as all indices are up 4% to 6%. Frenetic buying as Pension funds are rebalancing their portfolios at the last possible moment. The kind of oversold, rip off your face bear market rally that is even beyond expectations. DJ30 came close to +1,000 before backing off some.
We closed what was left of the downside plays that are holding the bounce -- practically all stocks. Picked up some AMZN early and also some WDAY, SAVE. Software is strong as TEAM positions bounce nicely off a nice pattern, WDAY obviously bouncing as well. With these kinds of bear market moves you close the downside and then let the sweet patterns set back up after the rally, then you are on it again.
Oil is up 9.57% as Russia gives the oil market assurances. Seems as if everyone is happy in all markets.
VIX is back down near 30; did its job near term.
How long a bounce? These bear market moves are hard to gauge, particularly when DJ30 is up now over 1,000 points. We play it upside, then get ready for the next downside leg if it shows. Don't think this is the end of the selling, just a rip higher. We will see, however, as the charts will show if leaders emerge with good patterns or if it is just a massively oversold bounce.
SP500 111.06, 4.73%
NASDAQ 349.14, 5.63%
DJ30 1027.07, 4.73%
NASDAQ 100 6.02%
Jon Johnson, Chief Market Strategist
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