OJ - You are scaring me. As Bearish as I have been on this market for a few months now, I am starting to wonder if we have seen the carnage for the mid term already.
I do believe we are extremely over priced, the VIX, TRIN, candlesticks, P&F, renko, 3-line, cycles etc all point down so I am open to every bearish scenario that can be said.
However if the market were going to drop, today had every excuse to do so and yet there were no bodies flying out windows on Wall Street. HWP warned, CSCO had it's big bearish engulfing from Friday, the Bond crashed to give a TYX reading of 6.396 yet we didn't drop as far as we gained last Friday.
This market is killing anyone tring to go for any sort of longer term play. I am still curious and have not found a reason that the Bond recovered prior to the close. I have over bought readings on many stocks and sectors but I also have a class 2 over bought on the TYX now.
I am sitting on the fence here as this market tries to find some sort of direction. I think the market wants to go up but there is absolutely no good news out there to allow it to do so. However on teh other hand, there has been bad news of every type the last few weeks. Market generals all saying business is dead, stocks that always surprise to the upside missing for the first time in years, inflation worries, hostile fed yet the market will not cave in. Last years bad news and the year before were minor short term problems yet the market took it harshly, now we have real problems on the horizon and the market is laughing it off.
Caution is the buzz word for me at least right now. I still think the market should go down, but my point is the market isn't listening to logic right now and we have seen what happens when this glue bottle has been passed around before.
Good Luck,
Lee |
