NASDAQ PULLING THE MARKET HIGHER
The Nasdaq Nov/Dec high may act like a magnet to pull the S&P 500 price higher before generating a half cycle top.
Obviously it goes without saying that no one should be selling short right here. I’ve been on record as saying that no one needs to short anything for the next 3-5 years.
We are transitioning into the bubble phase. Yes, there will be corrections along the way. But I guarantee you will not be able to outsmart the bull market. The only people that will make any long term gains on the short side will have massive research departments finding sick companies that are going bankrupt. Retail traders with some charting software are not going to make money selling short.
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Likely. Vix beginning to wake up, upside flurry in vix? Pull back in us major indexes? Situation wrt pm sector is fuzzy. Fly in the ointment is bpgdm! It may need time for a decent pullback to facilitate a decent upswing in pm sector? US$ is powering up to 99 region? Will that be a headwind for commodities? Any ideas out there?
Strategy wrt spx is relatively clear. Step aside until pull back is complete and then go long. Strategy wrt pm sector is a bit cloudy.
September oil now down almost 17% from recent high. It has been ignored by stocks so far, but will it become a drag if it continues below $40?
Oil is due for an ICL at any time. The 38% Fib is right about $42. Barring an intervention to stop the correction it should at least go that far. That will be about the time the usual crop of analysts get uber bearish on oil and start calling for $20 again. Then of course that’s when oil will bottom and start the next leg up.
Gary,
Sorry to rain on your parade but this time, I see a lot of analysts saying exactly what you’re telling your subs about oil. Why stop at 38% Fib, it can go a lot lower – maybe mid or low 30’s
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Thanks Gary