Lots of buy orders coming through last night, but sell sentiment on XJO increased. Looks like the trapped shorts are the ones buying in to close their positions while some 'gutsy' late arrivals are trying to short the market on the way down. I suspect that the dip will not be as sharp as some bears expect. This is due to buy orders coming through from existing shorts. I suspect that shorts with entries at lower levels are going to be trapped forever(until their margins get squeezed), as the market never dips to their levels and some late short entries are going to take the place of existing shorts who will now buy in to get out. Once there are rotation of shorts, market is going to shoot up using the next short squeeze as jet fuel. I'd only be wary of downside risk only if martis were to turn bullish. I'll be watching the market moves carefully to look for opportunities to buy and add to my longs.
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XJO
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Lots of buy orders coming through last night, but sell sentiment...
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