Looky here, people. By numerous forms of reckoning, this market is the most overbought in two years—by normal measures.
But just in case you’ve been living out of a yakskin yurt in Siberia the past 12 months, know this: we have not been in a “normal” market environment.
You don’t have to pull out your volumes of charts and technical data. Just use your common sense. Considering the extremely oversold levels the market is coming off of from Oct//Nov, we are not “extremely overbought” right now, by any means. Sorry, bearshitting short-selling hopefuls. Your motives and agenda are clear when you keep saying stuff like “Market going down. New lows this (month)” (ad nauseum).
Don’t you think that the stupid and embarrassed fund managers realize this? They are looking at no bonuses for 2008. You think this is all very funny? They must keep buying now, or risk going into personal bankruptcy and foreclosure. They’re even cutting back on their visit to Starbucks, choosing to drink Dunkin’ Donuts coffee instead, from a pink Fly-autographed cup. It’s a conspiracy. If it all works out, they will be able to stay in their homes and say they called “The Bottom”. All will be forgotten and forgiven (in 20 years).
In the meantime, money flows have been coming back. Don’t be surprised to see net inflows to mutual funds in January, due to the Obama-rama celebration.
See, you must take things in context, else you will embarrassingly debank yourself while giggling like a clown. That would be sad, my friend—but still rather clownish.
As I said before, we will know this week if this market rally has legs. However, I’m beginning to believe that the stumps are sprouting some feet.
That is all.
Carry on and be well, as best you know how.