Tax Day ISEE Earns Astronaut Wings

Last night I checked the updated ISEE Equities reading and simply could not believe my eyes. This, my dear ladies and leeches, is one for the record books – brace yourself:

That’s right – the ISEE Equities spiked all the way to 350 last night. No, that is NOT a typo – not 250 but 350. As a matter of fact it spiked so high that it officially breached the upper stratosphere of what’s considered an overbought market. For that accomplishment along we at Evil Speculator believe that, yet again, Ben Bernanke deserves to be awarded the coveted asstronaut astronaut wings.

Congrats Mr. Bernanke – you’ve done it again. We officially have lift off in the financial markets and all our past troubles are already forgotten. Fuck gravity – we have printing machines!

Alright – curb the sarcasm, Mole Meister. My apologies – but this is quite an occasion and I simply couldn’t resist. Now, let’s go back to business, shall we?

The 10-day SMA of the very same ISEE reading has now hurdled itself towards 250 – a first since its inception. Yet again are we in record territory and the gold metals just keep stacking up (but make sure there’s no tungsten inside). Of course this will all end in tears and that soon. Perhaps today is a little taste of what may be lurking around the corner. However, I wouldn’t read too much into today’s little drop as it’s OPEX Friday after all. So let’s see what happens Monday/Tuesday – if we have a muted session and only a partial retracement we could be getting close.

Folks, Fed machinations notwithstanding – gravity eventually kicks in. You can fight it all you want but once you run out of buyers the jig is up – it’s as simple as that. This situation will get very ugly and that probably fairly soon. Please don’t be seduced by greed and recency bias – stay out of this and if you feel gung-ho maybe grab a handful of OTM puts – not today, maybe Monday or Tuesday when they ramp it back it up again just to stick it to any hobby bears.

UPDATE 2:11pm EDT: This is why I want you guys to be very very careful right now and not chase this market while we’re at daily lows:

Volatility has exploded overnight and yes – we are now looking at the first step towards a VIX BUY signal – go figure. Now, I admit – juxtaposing these two charts is a bit confusing. And what do we do when we are confused? That’s right – NOTHING. Let’s just just crack open a cold one and call it a week.

UPDATE 3:40pm EDT: The marines stormed in and bought the dip a little. Thus far we are back inside the 2.0 BB on Mr. VIX – let’s hope it stays that way – a little ramp up toward the bell would help. Yes, that’s exactly what I’m saying – a ramp up today is bearish tomorrow – a drop today would only serve to push us outside the 2nd standard deviation – not good for the bears.

UPDATE Closing Bell: We did close INSIDE the 2.0 Bollinger on Mr. VIX. Thus so far the bears are safe. This is actually good as it will push the upper line higher – just like what happened on the lower border for the past two months.

Stay frosty!

Mole