Volume shrinking up is always a factor when markets form tops. It's my guess that the S&P will, at best, only make it back to the April highs. If the S&P can do that, it will form a massive double top. I am also looking for it maybe to fail somewhat below the April highs, in which case it could be a right shoulder. Either way there's very little upside ahead. And there appears to be major downsdie possibilities for those who are a tad more patient.
1200 coming this week. I have heard a few calling for 1300 by the end of December as well, greed continues to pour into these markets as money managers continue to raise their target on the spx on a minute to minute basis. Another thing that is baffling me us that now all of the sudden I am reading that now gridlock in the house is going to be a positive for stocks. I remember last elections they were saying gridlock would be a negative for stocks. So which one is it? And speaking of oil above $80, prices near me are already over $3.00, I just want to thank the greedy fucks on wallstreet and speculators for this.
Here's what Bill Carrigan had to say on today's markets : "The problem for many investors and analysts is the error of hyper-focusing on the fiscal and monetary problems in the US. Investors are confused when the stock market is rising, and yet the performance of the underlying local economy doesn't seem to justify the optimists. This is because the North American equity markets are no longer a gauge of the domestic economy." I thought about you and a few others on here when I read this. Later on he outlines that the Dow is only up 5% in 5 years, but the top 10 components are up 57% ( eg large multinationals like IBM, Caterpiller, Coke ) and the bottom 10 included mostly firms focussed on the US are down 25% ( eg BAC down 140% ). Please note the earnings reports of the top 10 I know about are again very strong right now; Caterpiller had blowout earnings. BAC on the other hand had a huge writedown. And this is just pure speculation on my part but the whole Dow thread from deadbroke seems doomed no matter what occurs. Here's why. If the few really bad laggards like BAC start crashing, the Dow will remove them and replace them with new highly profitable companies ( and who knows what new successes will come; a crumbling BAC creates a lot of new customers for someone else in the US ). So the idea of a super low Dow ( deadbroke wants a riidiculous 2500 ) is almost impossible.
Actually as the top is in the process of forming, volume is low. At the time the top is put in place, the volume picks up and is high.
Futures as usual are on the rise yet again: *S&P FUT __1185.09__ +4.40 __+0.37% *DOW FUT __11124.00__ +34.00 __+0.31% *NAS FUT __2108.75__ +4.75 __+0.23%
First I need to know if you're long or short the S&P500. If you're long, my answer is: 1000. If you're short: 1200.
Fuck they are really jamming the markets higher overnight, by tomorrow morning they should be up 2%. Talk about manipulation, another gap higher tomorrow followed by a close over 1200 on the spx. Bubble Ben bernanke sure knows how to pump a market higher. *S&P FUT __1192.50__ +11.80 __+1.00% *DOW FUT __11182.00__ +92.00 __+0.83% *NAS FUT __2121.50__ +17.50 __+0.83%
If the markets were falling 1% a week they would intervene and try everything possible to push the markets higher. Can't wait until all these new asset bubbles go pop!!!!