Massive Market Upspike? (Opposite of a Crash)

Discussion in 'Trading' started by kmiklas, Nov 29, 2016.

  1. comagnum

    comagnum

    Yea that really was a ride. Back than nobody was playing for a ticks or even points - the game was to get into the hot stocks and double, tipple, quadruple, etc, etc, your account to infinity - and many did, although most gave it all back.
     
    #11     Nov 29, 2016
  2. ktm

    ktm

    You have to remember that humans are ultimately behind all of this. It's all fear and greed.

    In a crash, the fear takes over and traders eventually "puke it up" - they just get rid of everything for fear of losing what they have left.

    On the upside, greed is there early in the move but once humans have some seriously quick profits - fear again takes over and the selling starts. The fear this time is not losing what you've just made so quickly. I think this is why we don't "crash up". As Robert said, you typically only see these moves as a rebound.
     
    #12     Nov 29, 2016
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  3. JackRab

    JackRab

    As @Robert Morse says, a broad based index usually doesn't spike 10%.

    The only time I've seen a massive gap opening was on expiry Friday in I think October 2008. European indices with + gap of 10%. Banks 20%... crazy.... on f^*$'n expiry!! :D:wtf::vomit::sneaky:

    EDIT, maybe it was September... can't remember.
     
    Last edited: Nov 29, 2016
    #13     Nov 29, 2016
  4. Massive upspikes also in Oct 1998, Jan 2001, Apr 2001 (Greenspan intra-day rate cuts). Sunday night in May 2011 (the OBL capture), there are numerous others. Ask yourself another question though. If the Russell had dropped 16% in two weeks (similar to last winter), what would the reaction be?
     
    #14     Nov 29, 2016
  5. Fed rate hike is on-the-way.....any thoughts of a "Crash-up" are likely to be doused.
     
    #15     Nov 29, 2016
  6. We've had a bit of a "crash up" already. Russell 2000 up 16% in 2+ weeks.
     
    #16     Nov 29, 2016
  7. algofy

    algofy

    The classic melt up
     
    #17     Nov 29, 2016
  8. bongo

    bongo

    in terms of the current rally in US equities, isnt it based purely on the expectation that Trump will be able to execute all his plans? however the uncertainty with the policy is not being considered and it is highly unlikely that Trump will be able to execute all his plans. The valuations Shiller PE are way above average 16 at 27%. So any dout of "Trumpflation" should lead to a large correction in equities. Does it sound probable?
     
    #18     Nov 30, 2016
  9. zdreg

    zdreg

    the stock market in Zimbabwe, Germany in the 20's, Venezuela etc.?
     
    Last edited: Nov 30, 2016
    #19     Nov 30, 2016
  10. TraDaToR

    TraDaToR

    If you want markets with "up crashes", trade commodities. When stocks are low compared to demand, it creates the same kind of fear for commodity commercial users as the one experienced by stock holders on market crash days. But it is a widely known phenomenon, so for example commodity options MM make their smile skewed to the upside.
     
    #20     Nov 30, 2016