We almost always overvalue bull-fatigue over bear-fatigue. Bulls appear to be uncontrollable and aggressive spending their energies in faster bursts. So, we think bulls are more vulnerable than bears. In bull markets, this is very close to the truth. But, the way bulls play the bear markets is often very underrated. Bulls do not play the same way in all markets. They constantly fashion their market approach to context. Yet, bulls are perceived to be more likely to tire than the bears.
Bears appear as the big bullies. They come across as steely, iron-willed and indomitable. In bear markets, they look every bit intimidating. They can take prices down to where they like. Playing against the bears in falling markets can be brutal. Weak bull traders often are the bunnies to the bears. For traders with limited money, the reality can be very different from the stronger bulls with deeper pockets. The truth is that bears feed on weak bulls and bulls feed on both the weak bulls and weak bears.
We seem to be in a market where weak bulls are tiring near the market bottom. Interestingly, bears also tend to become complacent just then. This is when the strong bulls usually take over. We are seeing this in a few beaten stocks that are showing strong moves after falling for quite some time. The strong bulls need to build on their speedy moves. This is an exciting contest where weak bulls and weak bears will get taken out very swiftly.
And, the game will warm up between the strong bulls and strong bears.