The boat is now top heavy.
It's just a matter of time before this crazy roller coaster starts going the other way. Remember the market does not take any prisoners. The top heavy Bear raid clubs will find out pretty quickly what it feels like to be a beach ball that is forced under water too deeply. It will shoot up well past the water level before settling back down to normal levels. But can the Bear raid clubs stay liquid during the eventual spike up?
What will cause a spike up?
- Credit Suisse is betting oil prices will bottom out around $25 and plans to boost its holdings of energy shares when it does, according to chief investment officer Michael Strobaek.
- Capital Economics China economist Julian Evans-Pritchard agreed that concerns about China's outlook are overdone: "With the tailwinds from recent policy stimulus still gathering, we expect the data to gradually turn more upbeat over the next few months... The recent market volatility has been driven more by sentiment than by economic fundamentals." - See more at: http://business.asiaone.com/news/pressure-grows-china-stimulus#sthash.hFQsxVVH.dpuf
- Central banks still have more firepower they can use to counter a slowdown in global growth, which does not change the outlook for recovery in the euro zone, European Economics Commissioner Pierre Moscovici said on Wednesday.
Or it could just be the eventual rebound from an extremely oversold condition!