Whipsaw – And There Go Your Shares

If you’ve never been “whipsawed” before well…..you sure where today.

Whipsaw – A condition where a security’s price heads in one direction, but then is followed quickly by a movement in the opposite direction. The origin of the term, is derived from the push and pull action used by lumberjacks to cut wood with a type of saw with the same name.

There are two types of whipsaw patterns. The first involves an upward movement in the share price, which is then followed by a drastic downward move, which causes the share’s price to fall relative to its original position. The second type involves the share price to drop for a little while, and then suddenly, the price abruptly surges towards positive gains relative to the stock’s original position.

Now I’ve been suggesting that the big boys have been quietly buying behind the scenes for several days, but today may well have been the first day that their activity was clearly seen by all. What did you think – a bunch of angry hippies (with their trade signals now honed to perfection) all got the same green light this morning to “buy like the wind”? Or better yet – some rinky-dink investment group of a couple angry old men (with actual belief that their combined buying power is sure to move the needle) all pooled their beer money and “rocked the markets” today?

Please…these characters are the largest contributors to the entire process, as once again weak hands are whipsawed and BAM! – There go your shares!

The short dollar positioning begins….as whatever gas the dollar may still have left will sputter out quickly – here in the days ahead.