One day and a decent bounce later, the majority again was quick to dismiss the bounce as one that was going to fail immediately, especially after hearing a dire warning from a billionaire.
Fast forward five days and sentiment now seem to be leaning in the "we are never going down again", which is a possibility that is practically impossible. This market continues to remind of 2011. We had multiple rallies that were faded and various selling routs that were faded as well. I think we should treat the current market as such until the middle of October.
Since 2000, we had 12 instances in which we were up five days in a row, with 5%+ gains. 12/12 closed lower at least once in the next five days, at an average of 150 basis points at the first negative close.--PastStat.
Choose your entries and exits wisely in this volatile market.
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