The Week Of Embrace

Last week the S&P 500 rallied 3% even as investors fought the rally. Puts were bought all week, while Rydex traders have sold the rally every step of the way. I suspect that this will be the week when everybody finally embraces the rally. The market will not be maximum overbought until the end of the week and it is likely we will get there.

The market remains overvalued and the economy remains weak but a number of events have come together to give the market one more shot in the arm. While I will be looking for chinks in the armor I believe that fighting the market this week will be futile. Next week is a different story. By the end of the week we should see some giddy bullishness just as the rally nears its end.


Anonymous said...

I just got short the market dawg.

Long EDZ at 5.71

I'm not buying it. Earnings is over man. I think 3Q will be no different from 2Q. Market went up leading to it (earnings) and immediately afterwards and will sag after it's over.

9% of this country is in the manufacturing sector. The other 80% is in the shitty movie industry or pushing paper to one another or in the porn business.

You can sustain growth or maintain economic dominance selling shitty movies or 5 dollar coffee forever.

All this time, we've been flying on US Petrodollars and borrowed money. The emperor is gonna be shown how little clothes he wears in a long cold winter.

Anonymous said...

The other 11% is in the community college industry teaching 2nd grade math.

Tsachy Mishal said...

Could not agree more with you. I just want to give this rally a little more time.

Anonymous said...

This news about the G20 and the IMF stating the dollar is strong is a little bit disconcerting. The news seems to indicate the dollar is going to push lower.