No Bear In Sight
UPDATE 1:23pm EST: We keep busting higher without a bear in sight – bulls are seizing the opportunity to bust the tape higher. Nothing pushes markets higher than mass unemployment – raises ‘productivity’ (i.e. jumper cables on employees’ nuts) after all.
Final line in the sand is 876.79 – a few ticks below the January 28 high. If we breach that one the wave count has to be re-evaluated. And wave count or not – breach of that high would make me very cautious.
Today is a good example of the old expression “The market can stay irrational a lot longer than you can stay solvent.” 😉
UPDATE 1:44pm EST: I love the smell of max pain in the afternoon – the bulls are not done yet, just FYI.
Check out this 20 day Bollinger around the Yen – way oversold. The Yen has taken it in the rear in the past 2 days and we are way outside the lower band. What you think will happen next? And what would happen to an overbought equities market when that happens?
UPDATE 2:10pm EST: Let’s review Exhibit C:
Well, unless we’ll see a 60 point plunge in the next 2 hours it’s safe to assume we’ll end the week up. Remember that weekly chart I showed you guys last Friday? Well, there you have it – we got some relief from oversold conditions. I don’t know about you but I’m ready to roll next week – adding puts as we climb the latter.
UPDATE 3:37pm EST: I see more permabulls stepping in to keep the tape above VWAP. Oh yes, please – make my day. I’m buying puts now on every f…ing rip 🙂
UPDATE Closing Bell: Wow, today was a very productive day – can’t wait for Monday. Enjoy your weekend rats – I’ll be chiming in sometime Sunday afternoon to bring you up to speed of what I think awaits us next week. FYI – I exchanged my June puts for massive amounts of Feb/March far OTM puts – was loading up on every rip. If we rally up next week my punishment will be mild – if however we drop into the abyss (as hoped), well you do the math…