NEW ‘BIT CHOMPER’ BULL MARKET – WHAT CORONAVIRUS AND RECESSION? $SYY $VXX $VIX $DJIA $DIA $DAL $AAL $AAPL $AMZN $AMD $RCL $CCL $HAL $PENN $VTR
The U.S. now has the most coronavirus cases. Still, “bit chompers” in the stock market helped produce a 20% gain in major indexes in only a few days.
That’s something I have not seen in my over 30 years in the markets.
Who are the bit chompers? The anecdotal evidence is that they are the same investors who were leveraged to the hilt and aggressively buying during the 10-year-plus bull market, leading the stock market index S&P 500 SPX to a new high Feb. 19. When the market crashed, they suffered massive losses.
Perhaps they felt they had no choice but to aggressively buy on this dip to make up for their losses.
March 28, 2020