Just another typical bull market day. Overbought? Says who? 
The action today sent the Seven Sentinels back into very bullish territory, and the DOW finally reclaimed the 10,000 level. Is it time to reverse now that we hit it? Only for no other reason than we're due for a pullback again.
But longer term how can anyone argue with this strength?
Now don't get me wrong, I'm not getting overly optimistic. I still believe we have a strong reversal coming, but I've mentioned before that I thought the market would not drop hard with just a whimper. Sentiment just doesn't support that scenario. We aren't bullish enough yet. Not everyone has been convinced to throw caution to the wind. It could be that the last bear needs to capitulate before the party will end.
So perhaps those fireworks I'm looking for are just beginning as we ramp up on a parabolic spike higher?
I don't really have the answer to that, but that's my best guess as markets tend to get silly and this is feeling like 1999 all over again. But the day will come when the "no kidding, this is the real deal" sell signal is given by the Seven Sentinels. Will I recognize it when it happens? I sure hope so. I hope I have more than just a Seven Sentinels sell signal to give me a clue too. But I'll just do what I always do and discern as best I can where the market is headed as we move forward. And for now it's still up.
Here's today's charts:
After a brief bit of deterioration, we can see all four of these signals are flashing a buy today. Notice that NAHL and NYHL are seeing more and more yearly highs of individual stocks.
All three of these signals are flashing buys too. So all seven are back on a buy, which keeps the system on a buy.
Our Top 25% have not changed either. Still collectively holding over 90% stocks.
The action today sent the Seven Sentinels back into very bullish territory, and the DOW finally reclaimed the 10,000 level. Is it time to reverse now that we hit it? Only for no other reason than we're due for a pullback again.
But longer term how can anyone argue with this strength?
Now don't get me wrong, I'm not getting overly optimistic. I still believe we have a strong reversal coming, but I've mentioned before that I thought the market would not drop hard with just a whimper. Sentiment just doesn't support that scenario. We aren't bullish enough yet. Not everyone has been convinced to throw caution to the wind. It could be that the last bear needs to capitulate before the party will end.
So perhaps those fireworks I'm looking for are just beginning as we ramp up on a parabolic spike higher?
I don't really have the answer to that, but that's my best guess as markets tend to get silly and this is feeling like 1999 all over again. But the day will come when the "no kidding, this is the real deal" sell signal is given by the Seven Sentinels. Will I recognize it when it happens? I sure hope so. I hope I have more than just a Seven Sentinels sell signal to give me a clue too. But I'll just do what I always do and discern as best I can where the market is headed as we move forward. And for now it's still up.
Here's today's charts:
After a brief bit of deterioration, we can see all four of these signals are flashing a buy today. Notice that NAHL and NYHL are seeing more and more yearly highs of individual stocks.
All three of these signals are flashing buys too. So all seven are back on a buy, which keeps the system on a buy.
Our Top 25% have not changed either. Still collectively holding over 90% stocks.
