The week began particularly well for the equity bulls, with new historic highs in the Dow and Transports. The sp'500 looks set to follow into the 1900s this week, and bulls could remain in broad control until late May/early June. A major turn lower is coming though.
The above chart remains a simple one...a fifth consecutive green candle, and there is simply nothing bearish in the immediate term. Sp'500 looks set to break into the 1900s tomorrow, or later this week, it really makes no difference.
Tuesday will see retail sales data, and if that comes in reasonable, then we will likely see sp'1900/05 tomorrow morning.
*next sig' QE-pomo is not until next Monday.
Permabull cashes out
Yours truly has battled hard in the past few weeks, and I have valiantly tried to trade the long side..to some success. With the market higher this morning, I bailed on 4 long positions (CHK, DO, SDRL, and STX).
The good thing, at least I've not been short since sp'1814, and so..when the current mult-week up wave does complete, then I'll be in a good state to re-short. I want to see 2-3 blue candles on the weekly charts, and then I'll be very comfortable to go heavy short this freak show of a market.
Goodnight from London