Today's Market Rally

[Joe Ross]

Anybody else think today's rally was a result of traders covering short positions from yesterday?

 

[Joe Ross]

...and not a result of market confidence?

 

[Lyosha]

If there was no confidence, the shorts would not get closed, now would they. I know I closed mine even before yesterday because I didn't think things would slip much further.

I honestly don't see where an additional drop would come from, and markets have been behaving irrationally the last day, and will eventually even back out.

IMO buy the dip.

My opinion, take with grain of salt and consult professional advice before investing.

 

[Joe Ross]

You are right, but I guess my question should be better stated as:

Was today's rally a result of covering shorts from Monday or outright buying because of confidence in the Fed decisions?

I don't see covering shorts always as a sign of confidence in the market, but rather being smart about your gains. But I am also new to the field.