For most of history, the sight of the sun rising in the east was the confirmation of a new day. In more recent days, the most reliable indicator is yet another permabullish story from Goldman’s mouthpiece, Zerohedge, which is suggesting to either “Buy or Buy“. Hard to believe what a sea-change happened to these guys. They have outdone Motley Fool in terms of ceaseless cheeringleading.
The ZH permabulls are emboldened, surely, by two back-to-back days of the bears getting utterly bamboozled. On both Friday and Monday morning, the market was in a free fall, but for some mysterious reason (cough cough the federal government cough cough) huge bids were throw in, reversing the red to green.
Which, likewise, smothered volatility in its crib.
Last week, I mentioned a number of times the importance of the 4400 level on the /ES and the likelihood we would climb there. Well, so far, so good, as we are merely 25 points away at this point. If people want to gobble up stocks beneath the likes of a pattern like this, hey, boys, keep clicking that Buy button.
And the /ES is not unique in its toppiness. The small caps, represented by the /RTY futures below, look just as sensational.
I might be in for another day or two of pain – – it comes with the job – – but I remain “pure bear” with 17 positions and 17% cash. As a contrarian, I must express remorse that I failed to go long TLT on Friday, and congratulations to those of you who did so.
