Honestly, I personally feel this could be an classic case of dead cat bounce driven & heavily influenced by short covering—traders exiting bearish bets rather than new long-term buyers. Secondly, this is reminiscent of low convictions: Trading volume during the rebound was approximately 13% below the five-day average, indicating a lack of broad market participation. Thirdly, trump is causing a whole lot of confusion: implied volatility remains elevated, suggesting investors are still pricing in significant future price swings. Finally, this requires observing if the price eventually drops below its recent lows. Follow-through in the coming days will be critical in deciding if this move represents seller exhaustion or merely a temporary reprieve aka dead 🐈 syndrome.
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