another word of cautionNice little relief rally early next week...

another word of caution
Nice little relief rally early next week - dow gained 749 at the close
market signaling slower rate increase likely - mr market is wrong but we wont see that till the next round when a 75 basis point increase arrives .....
and the surge of passive coin again into reverse ETFs' is at all time highs

'Investors are plowing record amounts of cash into risky funds that turbocharge investment bets during a market rout - ' wsj
thats why tech stocks don't appear to have traditional short positions....reverse etfs....you don't see em

in 2008 17billion crossed over into leveraged reverse etfs' .....year to date 2022 we're sitting at 28billion...USD
there are more reverse exchange traded funds in existence today than at any other time in history

this is not shorting as such ( though it actually is) but funds specifically geared to trade margin on negative movement in the underlying index....that means some percentage of the spike in the relief rally is directly attributable to these 'inverse ' etfs which draws further passive investors to see the trend and pile in believing the bottom has passed .......when in fact...well you get the idea....
passive investors should realise these funds are essentially day trade return funds looking for a x3 return on investment within any 24hr period...so essentially any investor who rides this relief will fund the margin gain on the ETF and loose their stake....nasty stuff

as before - read this post any way you wish but certainly worth watching this next week
glah