The bulls are still firmly in contract of the equity markets. In spite of its statistically-sound reputation as the worst month of the year for stocks, September has, so far, done nothing but good things for bulls. Just look at these major indexes below to see how well-formed these bullish patterns are, and how none of them shows any sign of slowing down, much less breaking.
There are a few “squishy” sectors, however, and as a person who always wants to uncover a bear market, no matter how hard it is to find, there are some areas where I have concentrated my shorts: energy, interest-sensitive stocks, real estate, and financials.
The broker-dealer index, for example, looks poised for a potentially powerful pummelling.
The emerging markets are either halfway done or totally done – – I can’t tell – – with their countertrend bounce, but I am highly confident that this bounce will exhaust itself and we will break to more new lows for the year.
Interestingly, the NASDAQ Composite is starting to show a few signs of fraying, given the damage it has done to its supporting trendline.
Besides those few exceptions, however, it’s still a cold, cruel world for the three or four bears that remain.
On a happier note, my honey harvesting is off to a good start, and I cannot BELIEVE how much of this amber gold I’m going to be able to extract from my little hive.
