Tale Of The Tape
This market continues to exhibit an upward bias, so keep buying the dip. Risks remain high.
The markets haven’t looked this bullish and stable since Obama was elected.
The spread between Buywrite and Buy ‘N’ Hold indexes made a new low and violated the lower Bollinger Band, signaling a potential trend change.
The falling spread between US Equity and Bonds indicates an increasing appetite for risk.
The Yen vs the Dollar continues to look strong. Though it is a bearish trades, it hasn’t suffered in the recent rally.
The McClellan Oscillator is overbought by recent historical measures, but we’re in unprecedented times.
Shorting this market is suicidal for all but the quickest. Ride the wave up, but know that it will come back down. I’m interested in accumulating breakout stocks on pullbacks, so I’m not bottom fishing. I will hedge by getting long SKF or buying Yen.