The market rally is weakening heavily as indicated from several momentum indicators, telling us that this rally is nearing its end. But with that said, NYSE breadth is still quite solid today, telling me that we may see a strong quick push higher before a significant top is formed. That will again present another good shorting opportunity. Once the market tops, the S&P should fall quickly to the low 800s, and possibly much much further.
Bottom line: the market rally is ending and I'm shorting heavily on any rallies from here.
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7 comments:
This is welcomed news. It's about time gold started to drop.
Sweet, I been waiting for this. :)
Can you gave a quick reply when you think the top has form? thanks, and what day do you think the bottom will form? I hope Jan 20 because that's my birthday and when Obama is coming into office
I hope I see S&P at 960
Michael, I can only make an educated guess as to when a top has formed, and most likely won't know until after confirmation. What I can say is that I'm shorting heavy now and feel the rally is waning significantly. Any strong rally from here is possible, but should be very short lived, like less than a week. As for the bottom, that's way too far in advance to say with any certainty. But it should happen within a couple months, and will most likely happen very soon after breaking the 2008 low (740 S&P).
I hope the top form at 1:15 pm EST
I meant the top might form at 2:15pm EST because FED is releasing the FOMC minutes at 2:00pm
I shorted the rest of my portfolio when the S&P was at 940. Hope there is no rally tomorrow. GL
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