Over exuberant bulls?
This rally seems a bit too long in the tooth for me. Tepid volume with extended momentum screams bull trap to me. And more and more bulls are coming out to the forefront also.
A bull trap can last longer than it seems (to trap more bulls of course!)
I think this rally is a combination of war shorts covering as well as hopeful bulls, comprising of bulls expecting a similar V shaped rally like last April and TACO bulls. Thing is the bulls have been lulled into buying the dips which has been a proven strategy all this while.
But hardened market participants with longer memory know that these ‘young’ bulls are required for exit liquidity.
The big boys don’t sell overnight. They have been selling for a while. And openly too!
Stay safe!
