The herd officially broke their fences tonight. Since the last bottom reversal two weeks ago, markets have whipsawed up the charts in violent bursts and extreme pullbacks to reach this week's action. Like wildebeests migrating across vast African plains, chunks of ground were covered on a dead run while other times saw them turning circles and even retreating.
Bulls milling in uncertainty on every continent behave the same way.
Those first brave souls attempting to forge the mighty Nile end up served as fillets to waiting crocodiles just like ebullient traders who bought up Monday's market close. Tuesday's open was not kind to any last-minute longs when CSCO grabbed the mike. CSCO's news Monday night was digested far better than would have been some months ago, but the moment equity markets opened Tuesday, calls were dumped and puts bought across the spectrum. Once the markets managed to hold ground, all those rookie shorts who sold everything in sight during post-market action the night before couldn't cover fast enough. This propelled us into a powerful short-squeeze rally lasting longer than the initial plunge, but not much.