Why Friday's 152-Point Rally is a Fakeout

Why Friday's 152-Point Rally is a Fakeout

By Prof. Jeffrey Bierman, CMT

Hey trader,

Friday's market move was one of the top three moves in market history.

Not by percentage. By magnitude. By dollar for dollar move.

At one point, the S&P 500 was up 152 points.

This isn't a real rally.

How do I know?

Just look at the number of stocks The Genesis COG has identified as short trades:

The Genesis Cog Scanner is particularly useful here because it looks at the short and long-term trends. It knows the difference between a fakeout and a true rally.

This was a pure short squeeze - a technical event completely detached from fundamentals.

Yet, most traders can't tell the difference between real buying and this flimsy price action

Today, we're going to change that.

I'm going to help you understand the difference between this kind of quick bounce and sustained buying.

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