A great boomerang rally
During the last two days of last week, there was a clear trading pattern — stocks rose in the morning, and then tumbled into the close as traders took the opportunity to get out.
Now it was time for the pattern to invert.
Stocks sold off massively at the opening in Wall Street. European shares closed down heavily for the day, but then the U.S. staged a great boomerang rally, to leave most of the main indexes higher than where they started.
Some people made a lot of money. Some others, presumably, lost a lot.
Is it possible this will prove the moment of revulsion that ends another alarum for tech stocks? Yes, it is. But there’s no particular reason to be confident about that.
The underlying trend of getting out of the most speculative stocks has stayed in place.
John Authers January 25, 2022
Panic-like selling emerges Monday as stock market tumbles
https://englundmacro.blogspot.com/2022/01/panic-like-selling-emerges-monday-as.html
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