Weakness and Strength

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Well, “BTFD” has worked for the 1,730th time in a row. It’s no surprise people believe in that simple strategy so much.

The market continues to be a mixed bag. Utilities, for example, my favorite index short, is still looking picture perfect from a moving averages perspective (which is all I am showing in this post). The crossovers are exactly what I want to see.


The Major Market Index is just scraping right along – – we’ve already got a bearish crossover, and it might just hold – – but today’s powerful rally is putting it at-risk. It won’t be clear until day’s end to see if this crossover survives or not.


For much of the market, however, 2018 hasn’t broken bullish spirits one bit, not even with the all-too-brief plunge we saw during that first week in February. Take a look at the Russell 2000 small caps. Not only has it been utterly uninterrupted in its ascent, but at this very moment it is at the highest level ever reach in human history.