Quote:
Originally Posted by CandyKreep
Chances it has any positive affect on the market this week or next? Kinda seems like a single bucket of water being thrown on a house fire.
It's pretty positive. The US economy has shown zero sign of weakness which will get the dip buyers in. I agree with the house fire analogy, the fire has more power than the water, but at this point we're down around 20% with a VIX of 35 and a lot of shorts to unwind.
The proper way to view this with regard to trading is that one should become more cautious on a short and happier to cover it. It's pretty hard to continue a big bear market with a robust economy unless something like a 2008 liquidity crisis is ongoing.
Positive economic data also means earnings is likely to be quite good, which will put a January bid under the market.