If you look at the daily interval chart, there was a very well defined and very strong pennant pattern that formed between the beginning of March and April 5th. It caught my eye and I bought calls yesterday and today because of it. I'm not sure what other facotrs came into play, but I'm pretty sure a textbook breakout from the pennant got a lot of technical analysis trading types into it.
I'm all out right now,,resistance at $40 from the early November highs, but 45 is a possibility if that is overtaken,,,all just my opinion.
go over to zerohedge...the story is there. it was a forced short squeeze to pump the market index at the end of the day.
everyone should be reading zerohedge. its the only place with all the news and honest news.
Yes, the blog of a narcissistic jackoff who hides behind an alias derived from one of the most idiotic, if entertaining, movies of all time - Fight Club - that was indicted for insider trading and forbidden from ever working in finance again. GREAT SOURCE OF NEWS!
I'm not really sure there is a better explanation than the one you have. It's just a panic short squeeze. It probably will be much more painful in the extreme short term (1-2 days), then it will snap back. And when I say more painful, I mean 20-30% or so.
If you're short, it's gonna hurt. You're only hope is to just hunker down and hold on beause it's gonna get quite ugly for you... but it will come back down some by next week.
The people I pity are the poor frigs who get long when it hits $54.
Volume wasnt that strong.
Go back to March, that was good volume.
We made a new high today on lower volume, which normally spells trouble.
RSI at extreme
Stochs at extremes
MACD at extreme
Above top Bollinger Band.
Good spot to get short.
Risk reward short term is in your favor.
I shorted at $39.75
Funny listening to people pick up 11% and expect the same tomorrow and the next day.
Lastly, overal market is overbought short term.
AIG might move higher, but it will go down before it goes up.
Might have a small gap up in the morning, but my guess is it will reverse down to 10 sma, find support and move back up after that.