We finally have a better bounce kicking in, but it sure doesn't feel like buyers are very trusting. Obviously conditions were pretty ripe for some sort of counter-trend move but I suspect that the folks who are fast to jump in don't plan on sticking around for long.
Many market players have difficulty with the idea of buying when they have a bearish bias. They can't justify buying anything for any period of time because they are so convinced that things are negative. The big counter-trend moves always cause them great frustration because it seems so irrational in their view.
At the other end of the spectrum are the folks who develop complex big picture bullish arguments simply because the market is oversold enough to finally bounce a bit. It always surprises me how many some people will day trade based on macroeconomic arguments.
We all have to develop a mindset that works best for us and it won't necessarily make sense to someone else. My particular approach is to always defer to the major trend, but to be very aware of the likelihood of very strong counter-trend moves with that bigger trend. I'm not at all bullish right now, but I'll hold my nose and make some buys simply because the conditions are supportive of an oversold bounce.
News of Gaddafi's demise is close is helping to keep this bounce going and, as I wrote earlier, the longer we stay positive the more likely it will draw in more buyers.