Another divergence between HangSeng and Nikkei. The future is very gloomy for those that choose to ignore the warning signs.
Looking 4 months ahead I was expecting the top in October. With new data from the last 4months available, the top is just around the corner. http://i20.photobucket.com/albums/b235/chicagodaytrader/SP500EW.png http://www.elitetrader.com/vb/showthread.php?s=&threadid=70338
do you think any fund manager would liquidate something before the year's gains are calculated and bonus are paid? the total return is what counts.....cash is part of the portfolio.....bonuses are paid based on the total returns of the portfolio......positions+bonds+commodities+cash+etc=total portfolio returns if i had large cap dow stocks in my portfolio i would sell them now and buy them back a whole hell of a lot cheaper....same thing for a bunch of nasdaq snp 500 stocks......damn chtr is around 2.76......it was 1.08 in august just as an example of the kind of price appreciation for stocks like ibm, xom, goog, bidu, appl....and on and on.....actually if i was managing a large fund i would sell a lot of inflated positions and lock in my gains for the rest of the year.....or better yet ....start shorting this top to the first pullback support level.....cover let it pop.....it will be a lower high....and then short again til the end of the year....you will have people who want to buy the pullback....but they missed out.....we never have had the september pullback.....so my ta says pullback....repop by latecomers....."but lower high" and then selloff of lower highs all the way down as comps will hurt yoy comparisons for earnings with the added pressure of slower gdp growth in us......money goes overseas....us markets go down further.
Nobody gives a tinker's damn about anything you mentioned. Even if your beloved nemesis, Bushitler, got an RPG up his ass his administration is winding down and fast approaching irrelevance. The Dems hold Congress and Chimpy McSatan has run his course.