The index is up 1.5% overnight yet almost no one trusts Trump.

    However, this more directly suggests that people as an overwhelming majority in the market are shorting stocks despite pumps up. What they don’t realize is that this wide consensus is exactly the kind of collective shorting that results in short squeezes. If everyone and their mother is so convinced that what Trump says doesn’t matter, and are 100% sure we’ll see way deeper lows, the market won’t give you free candy, regardless of how unreliable Trump is. It’ll do the exact opposite and result in a run back to ATHs

    I’d argue this was one of the main reasons we quickly went back up last April and it may now even be a faster more violent run up since literally everyone is now convinced that there will be major new lows. Look at the sentiment around you and use this as an opportunity

    Be weary that this kind of market sentiment is exactly what results in short squeezes
    byu/One-Signature-2706 instocks



    Posted by One-Signature-2706

    18 Comments

    1. HappyThrasher99 on

      The VIX not moving down while the index rises has the complete opposite effect to what you describe.

      A high vix with high prices means that when the vix falls, prices will rise more.

      If prices are rising and vix is flat, that is a good thing. It means prices are not rising as a result of low IV.

      (Edit: OP has significantly changed his post, and comments, to omit his mistakes)

    2. No-Tangerine5291 on

      Fear porn. Buy the dips and hold. They literally tell you what they’re doing every day on TruthSocial and or daily press conferences.

    3. lostredditorlurking on

      OP never heard of the term “dead cat bounce”, also some of the most violent short term rallies happened during a bear market

    4. Using past market action to make predictions about a situation driven by real world politics is… interesting. Hope it works out for you op!

    5. Bear markets have some of the most violent upward movements, but trend lower over time.

    6. its March 31.  a lot of private funds take their monthly mark today.  there’s no news just correlated incentives of the larger market participants

    7. ImTheLizardKing2 on

      Ya the negative sentiment in here means the bottom is already in. Have fun missing out as we rip to new all time highs now 🤡

    8. “The index is up 1.5% overnight yet almost no one trusts Trump.”

      I believe about 77 million Americans trust Trump, not sure why you would say “almost no one”. I certainly trust him.

    9. VictoriaAutNihil on

      Up, down, up, down, up, down. Until a prolonged, sustained run starts happening (8-10 trading sessions), I’m laying out. I might miss the bottom, but that’s alright. Rather that, than jumping in too soon and then see another 10-15% pullback.

      I suppose daytraders are doing rather well, but who’s in front of their screen from 9:30-4:00?

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