This is what it means to “fill the gap”…

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The market obviously feels supremely bullish. Many stocks are moving 10% or more per day. Small cap and speculative issues are moving 30% a week. Again, obviously this makes the vast majority of market participants ecstatic.

This suggests a few things to me. First, we know the market’s sentiment is skewing bullishly. Readings are at or near extremes. Second, because there are no sellers and no shorters, the market is wildly off balance. The natural checks and balances of supply and demand are not working because there seems to be no supply. But how can that be?

We know there have been tremendous liquidations in the two crashes and everyone who had to sell did so. But there seems to just be trading-oriented buying. Don’t they sell? and isn’t any and all  positive news built into most stocks as most have returned to pre-crash levels?

We’ve been getting paid to be believers. We should believe in the capital markets, the economy and the government. We should believe that everything is back to normal and its off to the races.

Which brings me back to balance. There is none. The market is wildly skewed to the point of extremes. I want to say that any student of the market would be very uncomfortable with the relentlessness of it and the huge stock volatility. It feels good but it feels very, very dangerous as well.

There will be plenty who tell me to get a life and go with the flow. Respect the trend and listen to what the market is telling me. I’m listening and I’m beginning to hear the rambling of a complete lunatic.

Buying a single digit (but not for long) semi equipment company…

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Published on CreateCoin Premium.
An Excerpt:

In the current market environment, where Central Bank financial engineering matters more than anything else, it has become obvious that the market responds more to politics than at any other time in modern history. There was time not too long ago where you had to work hard to connect what happened in Washington to what happens on Wall Street. Government policy only mattered to the long-term big-picture but what comes out of DC now moves markets instantaneously. Considering the market has been living off of government largess of every type, I guess it is natural for it to be a little paranoid that it can all be taken away easily and quickly. You wouldn’t be able to sense any form of market anxiety from the bullish market action, but with the MBS buying finished for now and interest rates ready to rise, it is easily understandable. As long as the green light is on, the market will continue to build a cushion as it gets ready for the eventual handoff from Washington. It has become the political market and it is a scary thought.

Ladies & Gentlemen,

Markets have just put on a remarkable show over the past few days. Everyone now believes that there is nothing that can touch this market and it is the epitome of resilience.

I want you to be very, very careful here and now. We are facing an imminent reversal in the major stock indices. I’m not stupid enough to call a top–but rather cautious enough to know that at this stage of the dance, you’d be wise to tread very lightly…