I know most of you bears have thrown in the towel by now. Well, I myself am not a big fan of fighting windmills Don Quixote style. However, a very bearish trap got triggered last night and when I took a peek inside I hardly could believe what I was seeing.
[shameless plug] This is a repost of what I sent to my own subs last night. They get it first but the magnitude of this event may be huge, thus this should be passed on to any of the few bears who are left, which is why I decided to re-post it here on the Slope.[\shameless plug]
Yesterday's equities only ISEE reading closed at a whopping 276. That is only three digits lower than the all time high of 279 painted on October 8th, 2007 – a few days away from the highest tick ever on the S&P 500, which on October 11, 2007 pushed to a record high of 1,576.72 and the very same day closed at 1,554.41. 512 days later the SPX closed at less than half that after having touched the March 2009 low of 666.79.
I am not certain what the implications of today’s reading will be but what I do know is that no market can keep going straight up forever. Yes, maybe we’ll see a 300 ISEE reading a week from now – but there WILL be a reversal and I now believe it will happen rather sooner than later. Maybe it’ll be nothing but a minor degree fourth wave and this craziness will continue for a few more months. Or maybe it’ll be a significant reversal and the bulls are about to learn a rough lesson in unmitigated greed.
Whatever it is – if you are long right now get out of your positions. All of them. You’ve had a great run – bears have been burned and you banked some mighty coin. But this episode of this story is over, done, complete. Get out now and laugh all the way to the bank – which most likely you already own.
Ignore this warning at your own peril.
Cheers,
Mole
