So the markets are up 8%+ in only 6 trading days, now why would anyone want to jump in this market now after the fact markets have climbed so much in such a short amount of time. There is now too much hype leaning towards one side and that side is of course up, time to take profits, the other day binky chadha predicted the SPX would jump to 1375 by years end and when every single stock pumping bull on cnbc is saying get long after such a powerful rally its time to sell and wait out the next drop which always does come.
You do realize that equities will be up another 1%-2% on the open tomorrow ...unless there is some sort of midday reversal, I would expect the Dow to close well north of 10500 - nearly a 10% move in 7 trading sessions.
Gibbs sealed the rally with his mea culpa/statement on "Meet the Press" Sunday morning. Sidelines cash starting to be put to work.
SPY is 1100 AH, so we are 275 points from the 1375 prediction. There are about 120 trading days in 210. If we are up everyday at 2.3 points per day then we will hit this target. This would be so fun to see!! Big money will take profit, pulls it back, drives it up. No one knows for sure. This is not a bull market so we need to be careful on buying on momentum. (huge). Just 6 trading days ago, everyone was talking about double dips, now Cramer is joking about dipping food on his show tonight. It seems like very few people would say buy low sell high. When dow broke 9750, most experts predicted that it was going to hit 8500, scary ma-50 crossing ma-200. Well, now they say buy buy buy. Be careful with the noise in the media. Buy good stocks on sales works. Using TA to enter/exit trades with disciplines also works.