Online Stock Trading | Near Term Weakness Always Leads to Long Term Gains

Near Term Weakness Always Leads to Long Term Gains


Filed Under Market Commentary |

Stocks once again took a dive and notched some hefty losses.  The NASDAQ was held up by AAPL whose lower volume effort looked mediocre at best.  We are simply in a weak time for stocks at the moment.  Following the removal of the uptick rule shorts are able to work more freely in the market.  There is no question that, for now it has bolstered their position.  Remember, human emotion is always to overshoot and there is no doubt there are far too many shorts in this market.  It will create a situation, when ripe a rush to cover will send a flurry of sideline cash into the market.  This could very well spark a tremendous rally in stocks, but we simply do not have the charts nor earnings firepower to do so just yet.  Financials continue to weigh heavily on the markets and once favored big oil names continue to falter.  We haven’t gotten to the point of capitulation, there is still some hope we rebound.

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