Bear Market Rally

239 views · Published 23 January 2016 · 16:18 · Indexed 18 October 2026

Channel: TheoTrade, LLC · 2016 · Education

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Is this a bear market rally? I believe it is. Let's take a look at the market divergences which are tell tale signs of a bear market. Volatility futures are still telling me risk is imminent. The most precarious area is the financials that didn't perform as well as the rest of the market in the rally. Also, the bonds didn't sell off. That is a sign that investors are not rotating back into stocks and that Friday's rally was nothing more than short covering. Here's what to do next week.

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