I Would Like to Add a Psychological Thought

I want to add one psychological thought to the technicals I discussed just a moment ago. We are at a very crucial spot, both in terms of technicals, as with the psychological.

Now, we hit all those things I pointed out in the prior article. But what do people really want here? They want the rest of this stupid gap to be filled:


Now this leg of the rally turned into a squeeze, so everybody’s back out of their shorts. But plenty of folks are still generally bearish (as they probably should be). But, it seems to me, that everybody wants to get short again just up above at the top of that gap. And that creates a wonderful potential: if everybody just got squeezed out of shorts, and if everybody is looking to reenter short at a higher price, it may mean that not enough people are actually short here.

Do you think the market is going to be kind enough to just drift up to that obvious spot so we can all short it again? I, personally, am quite skeptical of that. And so we do at least have the ingredients (finally, maybe?) for a big gap down. Let’s see.

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