Here Comes The Bounce
I love cats and the image of Bouncing A Dead Cat off on a hard floor certainly churns my stomach. But that - a dead cat bounce - is what is happening in the equity indices starting with Europe, as we speak. By 12:00h local time today,the DAX is up almost 2.5%, the wider range of EuroStoxx also shows more than 2% upside. German DAX Oct '15 to Jan 11, '16 "More downside to come, to double the low of October. Source: chartnexus This comes after a plunge of 1000 DAX points in 10 trading days! The volatility is tremendous, both down and up. It is therefore no surprise that the bounce is wild. Still, I would be extremely apprehensive to invest into this bounce. Not because it cannot be traded: Some short term traders will have a field day. My trading style requires more careful and time consuming changes. And this particular bounce will be limited, ending within the next 4 trading days. STI - already below the autumn lows, bound for much lower lows: my targets for e