Replies to post #466 on S2 Option Trader

[sungolfer]

S2 I did some back checking on the earning for last 3 weeks.Stocks that reported poor results and downside guidance had some huge one day gains.Never made sence other than short squeeze.And retail stocks running up here,what the hell just madness.

[dapro]

According to McClellan, the liquidity that was "given" to the banks was put in the market (not news there). However, the liquidity usually runs for just 13 1/2 months which means that the market should peter out within 6 weeks.

[plashadpobedy]

The Good Market....

This is one big short squeeze. A lot of people (including myself) were looking for a lower-high retrace, and what we got (again) was the mother of all squeezes.

Of course, the news has been outstanding lately, i.e. very low-unemployment, and today, rising retail spending. I can't imagine what would have happened had the number been a full percent instead of + 0.3%.

The big boys are helping with their recs though. For example, JPM downgraded FSLR (dead solar stock) at a bottom. The stock has risen $10/sh on the downgrade. Pure bear trap crappola.

I assume this "rally" will continue through next Friday (option's expiration), when, as in February, we will head down post-opt's expiration. My guess, is that Monday, 22 March will be the drop-off date, though it would be nice, if they pulled the plug on Monday, 15 March, just to throw everyone off.