Optimism is in the air. The birds are chirping. Greece got another bailout. And the Fed is lying about hiking rates.
Markets are celebrating the breakout of the charts today, as money managers scramble behind mountains of cocaine to get their market orders filled. Just about everything is up, aside from retail. They cater to a miserly genteel folk of 350 million moribund people. The real economy is doing just fine, dutifully employed and without health insurance.
Oil is on the cusp of breaking $50, copper is moving higher again and gold is in the pits. This is what one would call a ‘risk on’ melt up, one that has been predicted by The Option Addict for a long time. For a moment, it looked like OA might’ve fallen off a mountainside and hit his head. But, alas, he’s come though again with yet another sage call. For those of you attending this quarter’s online boot camp, you’ve certainly gotten your money’s worth.
Where do we go from here? I discussed this in Exodus yesterday. When the algos get overbought, it typically means the rally will continue, at least for another 10 trading days. The stats, quite frankly, are unbelievable, with the market climbing 27 out of the last 29 overbought occasions. It’s simply a byproduct of momentum begetting more momentum.
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BTD, a novel suggestion.
With so many credit cards not maxed out.. I think I should take cash withdrawals on all of them… buy TNA and hold for 10 days!
No? Maybe document it via Snapchat?
“Buy In May And Go Away”
Bull/bear investor sentiment’s been favoring bears for a month and been getting increasingly bearish. It seems like most have already adjusted their market holdings to a more bearish stance.
This week and next week will be gains. From there on, OA will be put in the loss box again. Fly will be right eventually.
Corzine was “right eventually” too.
Agreed, vandamme. Everyone’s eventually right.
1 word: Vix suppression
Gains have only (more than predominantly) come from the vix. (I would argue exclusively but you can argue codependently) I would argue the market-controllers know this (cus they’re doing it). If you have really have a legitimately strong market. You shouldn’t need to garner that SOLELY from manipulating vix (again for those slower-folks is very apparent). You should be able to get gains with a steady 14ish 15ish vix. Unfortunately, EVERY/SINGLE/RUN that makes everyone decide tide has turned, more upside available, bearishness has drowned. Just vix induced
painfully
pathetically
obvious
Dude, that’s two words.