ST Bullish Here

Just an update on my stance here. Still 50% long from last Thursday and no reason to lighten up. The McClellan and a few other AD oscillators have been showing some strong bullish divergences for a week now. Internal leads external. With the summer volume, big orders are are able to push the market in the desired direction. Basically every quant looks to piggy back the big buys by the mutual and pension funds and when volume is shoddy in the summer months it's more noticeable when the Mo-Mo players all jump on board.
* I would rather volume be stronger, but we already had a follow through day on June 2nd.
* Today's NYSE Up Volume to Down Volume came in at 44.07 to .02. (Very bullish) Possibly a 90% up day.
* In other words, the market is making a bottom here and we should see 1140 before we see 1040.

I can't help but to notice the amount of doom and gloom on this MB all of a sudden. As for the number of people watching the 1040 level and allegedly planning to buy the 1040 level, we've seen this before. If 1040 were to hit, those woulda been buyers will look for lower and lower prices in an almost deflationary sense and ultimately miss the bus anyways. This is what causes people to claim that the market is manipulated. They believe that they have cracked the holy grail to investing on stockcharts and if the market doesn't hit 'levels it is supposed to', then the market is rigged.
* ISEE has been supporting a rally for the past week also as more and more of the little guy buys bear funds.
* Speaking of bear funds, Rydex cash flow ratio hit 1.10 yesterday, the highest level yet in this 'bull market'. Translation: Rydex traders are buying more cash+bear funds than stock funds.
* Let's not forget one of the highest TRIN readings in history last Friday. That means many many more people were selling than buying last Friday. When everyone is looking for a curveball, give 'em straight gas and catch 'em looking. Historic times indeed.

The market, yeah it is rigged, but think about this: At any given moment in time, how many millions of people are staring at that chart of the SPX or Dow and using the exact same oscillators, RSI, MACD, etc?

I am a bear in terms of where the S&P will be by year end and still believe the bull was cooked in mid January 2010, but if indicators and sentiment give a reason to buy, then I can't let my opinion on economic matters get in the way of a rally. Picking an absolute bottom is a fools game and if I could have waited until Friday's dump to buy, I'd be in better shape, but I'm hoping I was close enough.
 
I think I predicted a 3% gain in the S&P in Tom's contest.

I stand by that.

That doesn't mean I want to accept a 3% gain:p


Its funny we moved to equities on the same day. You have been so quiet. But, it felt right.
 
Exactly right Bullitt. I did the same thing all last year as the market continued rising. I kept staying out (and even shorted it a couple of times) because I just knew it was going to retest the March lows. I just knew we were on the top of a W! But the indexes kept on rising! The market must have been rigged by the PPT! Live and learn.

By the way, bullishness on the dollar has rarely been higher, and everyone is bearish on the euro. When my mother and my secretary both inform me of how bad things are in Europe, you know sentiment toward the euro is bad. My contrarian take on this is that the dollar is beginning to roll over and the euro and the pound are turning up--both of which are positive for equities (especially foreign equities). That's why I'm 100% I fund.

Good read today.
 
Talk about folks being Bearish! Larry Kudlow is now on and is telling folks to sell stocks.... I hope Birchtree is not watching ha....
 
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