Extending yesterday’s baseball analogy, the market hit one deep into the gap on Thursday.  Before other bulls start doing cartwheels, let me remind them that a double does not score any runs with no one on base and over the past three weeks the bears have outscored us 12-3.  I certainly can run through paragraphs of analysis on the milestones the TICK data reached yesterday, but I ask that you take it on faith that the information suggests investors put money to work aggressively.  Instead, I want to focus more on the psychology of this promising bounce off the bottom in an effort to determine if stocks can extend this move.

Given the extremely elevated volatility and uncertain macro environment, the large long only institutions will Continue reading »