One gets jaded as day after day another historic record falls. Today the Dow rocketed more than a thousand points — greatest move in history.
This is certainly a buy signal. There is of course a complicated context around that statement. Up to now in this formation contrarians have jumped on a surge and blunted it by selling it. They could well do that with this surge. If they do it is a message that more downside is ahead. If the day stands and there is followthrough then we are probably looking at the bottom of this wave. Don’t hope for a letup in volatility.
Would we buy it? If we were day trading, for sure, although you are already late on the entry. This market requires constant attention and we are not in the mood for hours in front of the screen. As for considering the bar a signal for the beginning of a trend, extreme volatility up begets extreme volatility down.
High speed, high risk, high profit.