/biz/ - Business & Finance

>>18016382
Think of a group of folk what trade with a eye towards trimming their losses in a downturn. The ones who make up the majority of the selling during a crash. At some point almost all of these people have sold. When that happens you get a brief scenario where price isn't moving down because no one is selling, but news isn't good enough to draw buyers back in. On a single stock this usually results in the low flat line after the fall. On the index and index futures it sometimes produces a doji candle on the daily chart. If sellers are truly tapped out and the short percentage is massive, buyers can flood in for the squeezy squeeze maneuver. This is your dead cat bounce or legit reversal but you won't know which until later on. If news still bad enough to prevent buyers from continuing to buy at higher prices it'll produce a lower high followed by a second wave of aggressive sell offs and potential fresh low for the crash.

>>17047977
I got used to that sort of monkey business back when I was almost exclusively trading the dude weed. Things were pure evil in the media fud regard around 2018 when the sector was showing significant weakness. Take away: sell if you think the article makes points valid enough to drive a fear cascade, re-buy when the smoke clears.