The market is near or in a short term top. I lay odds on a shallow pullback of up to 885 area or a deeper pullback to the 850 area. It looks like a cyclical bull in a primary bear, but who is foolish enough to think the line is going to be straight up - save Mr. LL?
Long USAI 33.21 resumption of trend after pullback, bought after passed fridays high, which painted a bullish hammer
Boy, you gotta carry that weight Carry that weight a long time Boy, you gotta carry that weight Carry that weight a long time I never give you my pillow I only send you my invitation And in the middle of the celebrations I break down Boy, you gotta carry that weight Carry that weight a long time Boy, you gotta carry that weight Carry that weight a long time
Last piece of the puzzle is being assembled in the current bull trap. Put/Call ratio is nearing topping levels. The 21 day ma (.75)is edging down to its bear market trendline (around .71), but it is skewed by index options. The equity options ratio is much lower. Babak feared Lowry's analysis was solidly bullish, but they have been sounding a note of caution concerning the buying and selling pressures. The rally was fueled in part by rising buying pressure but more so by a significant drop in selling pressure. The rate of the increase in buying pressure has been slowing as the rate of decrease in selling pressure has been steady. But a decline in buying pressure will eventually bring forth greater selling, as the old saw goes, stocks fall under their own weight. I can't wait to see Investors Intelligence survey this week. I hope all the bulls are still snorting wildly because they can't see the matador and picador looming over them with blades of steel. Of course if the bull gores the matador and jumps the fence, i'm riding along with it. PS. I saw a bullfight once in Cali, Colombia where the bull jumped the fence and ran around the corridor only inches from the front row of spectators. Had it jumped again it would have been in the stands.