Solar eclipse has something to do with the stockmarket
Sun eclipse has something to do with the stock market. It is exploding to the upside in a sharp rally off its lows set on Friday.
I am just kidding.
The market is exploding to the upside because of extremely oversold readings on the charts. The market was oversold over two weeks of losses straight down without a single day of relief. When these conditions occur Technical traders get in and it bounces off hard. Not to mention bear markets often have sharp huge rallies only to sink down lower next few days later. This is not a bear market yet, but it sure looks like one.
There is another reason why the market is up strong. The G8 meeting at Camp David over the weekend fed enough doozy to the news media that it had a knee jerk reaction. The G8 and European leaders promised they will not abandon Greece and Euro zone will pursue all efforts to resolve the Global economic issues at hand. These news have been filtering off an on all weekend and have not stopped.
So when the markets opened futures were trading higher to start the day in the US as other markets have been up already. Most stocks are so over sold that they have such pent up demand built into them that entry level traders and Technical traders are salivating at them. AAPL isup 28 points and PCLN up 26 points as of this writing in a huge rally off their skewered lows last week.
We just have to see how this goes and if there is a follow through day within next 4 days where the indexes stage a 1 to 2 percent gain in heavy volumes.