10 thoughts on “Market wrap May 9

  1. Gary Post author

    At baby bull tops traders get seduced into thinking this time is different. We saw that last week as traders convinced themselves that gold would not correct this time or it would be mild. This despite the miners stretching 75% above the 200 DMA. Common sense goes out the window at a baby bull top.

  2. plo888

    didnt you say $ is toast a few weeks back. $ up and markets up?? Im short to spy 186.

    1. Gary Post author

      I’ll be willing to bet a burrito that you are about to get run over again.

      This is not a bear market. It was never going to be a bear market. The 7 year cycle was way too right translated for there to be any chance of a bear market. This was always just going to be a correction within a longer term bull market driven by global QE and negative interest rates.

      1. plo888

        arent you one of those that called this a bear market? i know ill be eating a burrito. just don’t forget about my call. humble pie. when we start guaranteeing …

        1. Gary Post author

          It wasn’t me. This was never going to be a bear market. The 7 year cycle was way too right translated for there to ever have been a chance of a bear. It was always just going to be a correction. I would have liked to see a deeper correction… but the PPT stepped in back in February and prevented the final crash phase that should have taken the market back to 1550.

          Like I keep saying: You can’t short the stock market. it is a rigged game.

  3. andballstoyou

    So Gary you expecting a strong dollar and strong oil over the next 5-6 weeks?
    That is quite a unique call.
    If you nail this I will be referring to you as Grand-master Oz.

    1. Gary Post author

      Yes I epxect oil to follow the stock market up. The only thing that should trade invesely to the dollar should be gold and only because gold needs to take a breather, not because it has to trade opposite the dollar.

  4. shine07

    I am sorry, Gary, but…

    AS EACH DAY IT PASSES WITHOUT A STRONG REBOUND…THE BEAR CASE GAINS GROUND…SPX2080 IS CRITICAL…IF SM REJECTED…GAME OVER – in major wave 2 down to 1950…it matches the USD rise and Cmmdty decline/correction!

    Starting cuting my losses and change BIAS.

    1. Gary Post author

      You are making a classic retail trader mistake and selling low at the bottom of a daily cycle.

      I never never never sell this late in a daily cycle. This isn’t the time to be selling, it’s time to be buying.

      Buy when price is oversold, sell when it’s overbought. Logical right? But very hard to do when emotions are in control.

  5. shine07

    Be cool…I did nothing yet…just anxious for being underwater for several days. I am reflecting also about some mistakes I made in my portfolio composition like puting too much on the same bag, etc…

    One thing I apreciate on you is, unlike many other services, you actually care and answer the subs questions and doubts providing encouragment. Thks.

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