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day trading outlook

Yesterdays 400 plus point rally in my opinion was nothing more than short covering. The new trader will automatically think a big up day is always big buying. You have to analyze data in relation to its price action.

When you hear “short covering rally” it means the commentator is trying to tell you we are in a down trend. We will most likely get follow through to the upside today and then I will be looking for a spot to get short again.

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