Our overbought signal has been running at an 85% success ratio clip the past 36mos. Due to the recent dislocation of markets, I was hesitant to accept this indication as something to rely upon. Alas, a few days following the most recent signal and it has proven to be invaluable once again.
What does this mean?
The mood of investors is brightened during periods of excessive bullishness to the point that is builds upon itself and causes V shaped rallies. This might not last forever; but has been the case recently and now, which also lends to the idea that this market isn’t done going higher.
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this overbought will be met by the 50dma just 39 handles above. We will then see what the market has to say but I doubt it makes it past on the first try. also fear/greed index now 31 and was around 3 at the bottom so we will see.
Bulls are complacent again. Time to harvest some bull meat.
The defaults are stacking up.
Moar indeud.
Mr. Pompeo said. “America is a force for good in the Middle East. Period.”
Have we been? Every American should read Pompeo’s remarks and decide the issue as if there were a draft that would impact the people they care about.
https://www.nytimes.com/2019/01/10/world/middleeast/mike-pompeo-speech-middle-east-obama.html?emc=edit_nn_p_20190111&nl=morning-briefing&nlid=78336894§ion=topNews&te=1
The phrase “for good” has two meanings, as in, “now that I have lost my bankroll, I will stop trading for good.”
It reads correct if you intepret it as
“America is a force (semi-permanent positioned ) in the Middle East (until you run out of oil).”
The slowing economy will cap the rally well below previous highs, but there seems to be an artificial floor. Sideways mostly. Trading a narrow channel.
Unless the shutdown drags on long enough to wreck the economy.