"The icecap may not be the only thing shrinking in the Arctic. The genitals of polar bears in east Greenland are apparently dwindling in size..." http://www.msnbc.msn.com/id/14485634/ Finally! The explanation why this market got as high as it did! As the market is going up for the third month without a pull-back, one would think there would be some fear it might have one soon. But, there is NO fear based on call_put ratio and VIX (see charts). With such strong bullish sentiment We should get a correction as soon as next week. Everything is in place for a decent size dump but what we need is a catalyst. I suggest that the catalyst will be AA earnings report Monday after close. AA could set the mood for the whole earnings season. AA keeps going ballistic and may tank on a slightest disappointment (or even without it).
I would say that call/put and VIX are at least as oversold as they were in Sep and Oct just before the corrections.
Here's one for you shortie. An expert I trust believes we will be in for a mid-term correction. http://www.decisionpoint.com/ChartSpotliteFiles/100108_cspot.html
AA being a catalyst?? I dont think so, AA kicks off earnings season but is quickly forgotten once INTC and other techs start to announce. AA can give commodities yet another boost but in my opinion the that sector is so overbought earnings are going to have to just beat on everything by a wide margin. JPM is another stock announcing next week as well. Last earnings season stocks went straight up, there were little or any pullbacks, talk of how great its going to be this quarter again has me thinking they could run the markets up another 15-20% in this quarter. Last quarter over 80% companies beat, the bar is set low again and I still believe 75%+ of companies in the s&p will beat.
It is not the size of the balls on the bear, its the size of the bear on the balls ! Wait, what's that? Oh, the polar bears are shrinking too because of the lack of sea ice on which they hunt for seals? Nevermind, the bears may be screwed.