Drowning Out The Noise

Good Morning. The market was down because of Dick Bove's downgrade. The market was down because of the Pay Czar. Blah blah blah. The fact is that two weeks ago an atomic bomb could have been dropped on the market and it still would have gone up. The market is simply overbought and in need of a correction. However, there were some internal divergences at the recent high that might be hinting at a bigger downdraft than what we have been seeing recently.
  • The Russell 2000 never made a new high on the recent rally.
  • The financials are severely lagging.
  • The overbought reading the market just registered was much weaker than previous ones. While a strong overbought reading is bearish in the short term , it is a sign of a market with strength. The weaker overbought reading we just had shows slowing momentum.
  • The market has registered levels of call buying not seen in years.

6 comments:

Pilot said...

A major turning point here, in my view.

Anonymous said...

Like I posted 2 days ago. T was a buy because of the iphone sales from apple. If you bought it you made a quick 5%. Not bad.

Anonymous said...

You go gurl, you the (wo)man!

Time to break out the chocolate and strawberry champagne and get a pedicure gurl.

Maybe a little bubble bath action.

Calgon take me away.

Indulge yourself! (pat on the back)

Anonymous said...

Jealous?(loser)

Anonymous said...

Of 5%?

Are you being facetious?

Anonymous said...

LOL