Don't Call It A Comeback

What do you get when you mix extreme sentiment and a $44 billion cash deal closing? One of the most stretched markets ever. I am salivating at the short entry point that is setting up. I will be looking for my entry point in the days following the closing of Pfizer/Wyeth. Have a good night.

7 comments:

Anonymous said...

I guess mkt could go higher tomorrow with GS and C. Hopefully today was the blowoff top.

Anonymous said...

I'm in agreement that this market is on cocaine, but when will we see a sizable sell-off?

I was talking with a banking friend today and they are ramping up with analyst to to review all the loan pools the fdic is about to bring to market. We are going to see a flood of bank failures in the next few qrts

Tsachy Mishal said...

I think we will put in a top on Friday or early next week? I think it is a top that will hold for a long time.

MarketCynic said...

The bigger they are, the harder they fall. With extreme call buying in both equity and index options, as well as a new all time high with bullish news everywhere and near 1100 on the S&P, one has to wonder: who's going to flinch? Bears have been mauled here, and the market hardly has a dip even intraday. It can only mean one thing: we will have to have a blowoff top on heavy volume. The thing missing right now is the big volume up move. It's required to signal that bears have capitulated and bulls have panicked by buying recklessly. I think there is a greater than 50% chance that the blowoff top happens tomorrow.

Anonymous said...

Wait you guys were saying the blowoff top happens after INTC earnings. Well that is today. What you can't just start delaying your blow off tops with the mkt.

I say it was today.

Chaos! said...

I think MarketCynic has a point. We may need volume to mark capitulation. I don't see sentiment at an extreme yet. They'll go down only after driving out every last bear. That said I'm starting to lean against the parabola.

Tsachy Mishal said...

Chaos! PM's are at record low cash levels. Thats pretty extreme.