Now that every newspaper ran a bullish story yesterday and everyone “believes”, we can have a correction. Volume is increasing and there is little in the way of support but air to the SPX 1180 level. Of course, 1150 should be tested as well…that is nothing, but will suck the speculative premium out of the market.
The market has been so consistently up and there has been so much lopsided excess in the activity and sentiment that it has been a magnet to the “what me worry” crowd. My email box is filled with penny stock winners and investment newsletter advertisements (in addition to the usual Viagra and Russian Bride ads). After 115% run in the RUT, and into major resistance, you’ve got to be sensible…
We’ve come almost a month after MBS buying has ceased, and 2 weeks after 401k money has been allocated. There are plenty of stocks to buy, but just not the ones you’ve been buying…Long suffering shorts will get even fast.
Get ready for egregious drops, short covering and lots of new volatility. Buy the tests of the primary breakout in your favorite stocks. And keep a clear head…
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Yup.
I am just surprise why so many didn’t put the pieces together….oh well
Nymph: Everyone knows everything. Its a question of “following the trend” at all and any cost…
Scott….true….
Scott Today is healthy IMHO. I love it when the market is down big & our Irish treasure is up 7.5% You are the man!!!