A Headfake?

I had more time to follow the market closely today, it is quite interesting. For some, it must be a quite ride today. On the surface, it was a down day, but there are more cross-currents underneath. For one thing, NASDAQ was up, and if you look at the NYSE as a whole, the advance/decline is almost even, and there are more new highs than new lows.

At one point,DOW was down 140 points and all the gain of yesterday seems to be wiped out. I actaully begin to doubt whether my judgement is right, it seems that 14000 is going to be broken again. I bet the bears and many short sellers had the same feeling, because all of the stocks of my screen turned red. But those feeling turnd to be fleeing, around 1:30, more buyer comes in, and my screen turned green, actually, there are more greens than when market opened. It was typical short squeeze. a headfake to lure those unsuspected to surrend their shares. One interesting example is TBSI, it opened high and turned to almost flat when DOW was at its lowest, but ended up more than 3 points higher, talk about the turn of the event !

If you look at DOW, only 2 (HD, BA) of 30 stocks are under 50 MA, and according to bespoke, there are 82% of SP 500 are above their 50 MA, and last time that happened, the rally lasted 3 months.

There are times one has to hit the abort button and head to exit, but is this the time? what could be the spoiler of the party.

One likely culprit could be the earning, but thus far, it seems like all is well. are people fretting too much, and like Don Quitox, battling the imagary enemys? Seeing what I have seen today, I\'d say that probably is the case. After all, Wall street is famous for being the place where people hope when they should fear, and fear when they should hope.

so, let\'s hope.