Could it? Can it? Will it? Seems improbable, right? Below the orange line there is zilch support for yle="font-weight: bold;">Research in Motion (RIMM) . That's what happens when stocks (and markets) run so high, so quickly obliterating shorts in their path.
As I scan charts of many stocks each week I cannot remember a time I've seen so many massive gaps in so many charts. Do they have to fill? No - but a great majority do in time. Not all of them - but most. As I sit and watch this high wire act play out each day, momentum chasing momentum chasing liquidity chasing green shoots, I have to ask how all these gaps get filled. There are far too many now out there for it not to happen. And with so many stocks having moved up in "straight up" fashion, when it turns there will be many charts like RIMM - with "no real support" for many points.
And don't forget, the indexes have gaps themselves at S&P 906 and NASDAQ 1800. A move to those levels would have stocks like Research in Motion and countless others doing the "unthinkable". Can you remember the last time you were seriously thinking about intermediate term stop losses? Me either. That's complacency. We're swimming in it. We'll see how many weeks or months longer.
Remember, these computers running the market went haywire a few times in 2007 (August anyone?) and often in 2008. So many algorithms are trip wired to the same conditions... it's easy to see the same herd momentum to the down as up. Our lemmings no longer are carbon (human), but silicon based.
But of course this cannot happen until we're "allowed" to begin breaking some key support levels on the indexes...
hat tip Zerohedge
No position
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