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That is 1 sector over a short time frame. Stocks can also double in a short time.


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A better example is some stock that went up 10X in the last 5 months.

Guessing at what the market will do is super smart when it doubles every month.

That's a pretty steep rise in a short time for any asset though.

The former makes your stock price double overnight.

It’s not immediate, but supply will catch up. If allowed.

Investors want to make money and with so much demand, will tolerate increasingly smaller margins to make even more money.


Don't look now, but the DOW Jones can jump to 36,000 in the same amount of time.

http://en.wikipedia.org/wiki/Dow_36,000


The stock market is incredibly agile and nearly instantly prices in news and future expectations.

Short term price movements are random, long term stocks go up.

Probably means it's a good time for a short-term short.

Generally to boost numbers for the quarter, it takes a while for the damage to propagate through the system after a mass firing (in terms of new code/features/products) but the profits increase instantly, appeasing investors who think only in terms of weeks and quarters.

Big popular companies nearing bankruptcy is ripe for a lot of volatility in the stock price due the retail meme behavior. If you time your entry and exit perfectly here your returns could be in many multiples of your initial investment. E.g. on sept 12 wework stock almost doubled in price in a single day of trading.

It's a postmortem of the mini-crash we saw in February. No one was expecting it, and it happened very fast. One day the Nasdaq futures are trading at 7100, the next day they are at 6100. Moves of 100 points(a whole day's worth of movement) were happening in 15-20 seconds. Just for some context, 100 points(on the Nasdaq) is $2,000 gained or lost, using the minimum size you can trade.

Though it's not like 50% of the days any given stock goes up and the other 50% of the days the stock goes down.

I don’t follow. If a stock keeps going up a share could change hands 10 times in a day, with 9 traders having positive realized PNL and 1 trader having positive unrealized PNL.

The stock-based comp portion of these are moving around incredibly quickly right now. Probably changes the calculus in lots of cases.

>"Don't be surprised to see a double top on the markets and then a sharp retrace afterward."

The Fed is pumping money into the system, and has said they're going to do it indefinitely. The stock market is going up (at least in nominal terms).

At least, that's where my money is.


This is apparent from the level 2 market data and the size of share blocks that have been moving.

The figure almost doubled in 2 months, then contracted 20%. If your stock is that volatile then 20% is not really newsworthy.

IBM is up 8% YTD, for one example. Kind of a shocker but good for them.
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