The neutral money changers at UBS are advising clients to sell the rally, in plain terms. They believe we are building a jenga styled top here, which is bound to topple over and crush the skulls of all in its path.
“With the rally of the last few weeks and looking at our daily trend work, the S&P 500 has reached its most overbought position since 2009!!” wrote analysts Michael Riesner and Marc Muller, with added grammatical emphasis. “We see the market vulnerable for a significant reversal this week, which we would see as the beginning of a tactical top building process and subsequent correction into deeper [second quarter]. We reiterate … [that we] would not chase the market on current elevated levels.”
There are two ways to view this, in my opinion. On the one hand, we are clearly overbought, having run up 12% over the past 5 weeks. On the other, being the most overbought since 2009 isn’t necessarily a bad thing, since it defined a generational bottom for equities–ushering in a golden age of winship for investors worldwide.
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But Brussels and shit. If body in parts are boolish. It is worldwide. Like a disease.
Sold everything today, moved to 100% cash. Soon to be T-Bills.
We may be overbought but the market will never fall the week after a recommendation with double exclamation marks (extra SPY).
Wise man once said… Never short a boring market. And damn this fits the bill. Wake me up if anything changes.
HA – – HA
Can’t have it both ways bulls
Keep moving it up
It just gets more&more O B