Well, it's obvious that the recent rally was a typical "Bear Run." So what is a bear run? Well, a bear run is a counter-trend rally (rally in a bear market) that is generally very swift, very big, and there is a lot of chatter about the rally being the end of the bear market. This last part is key. The rally has to be big and strong enough to make lots of people actually believe that prices are rebounding and that we're all gonna see blue skies from now on. Next, the euphoria turns to concern as the rally starts to stall and then fear sets back in as the market begins to slide back down and selling commences.
The above chart is of the S&P 500 for the last 10 days broken into 15 minute increments. The colored arrows demonstrate the various stages of the bear rally. The first blue arrow shows the overall bear market. Then the purple arrow shows the massive rally. Last, the other blue arrow is where we're at now...watching the market stall and start its slow painful slide back to reality. Good luck out there and be patient, plenty of great opportunities will present themselves before this bear market is over; just don't be in a rush to jump in.
TLT
The above chart is of the S&P 500 for the last 10 days broken into 15 minute increments. The colored arrows demonstrate the various stages of the bear rally. The first blue arrow shows the overall bear market. Then the purple arrow shows the massive rally. Last, the other blue arrow is where we're at now...watching the market stall and start its slow painful slide back to reality. Good luck out there and be patient, plenty of great opportunities will present themselves before this bear market is over; just don't be in a rush to jump in.
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